I received my Schedule K-1 (Form 1065) after I filed my taxes, but there was no gain/loss. What do I do? (2024)

FAQs

I received my Schedule K-1 (Form 1065) after I filed my taxes, but there was no gain/loss. What do I do? ›

I received my Schedule K-1 (Form 1065) after I filed my taxes, but there was no gain/loss. What do I do? Yes, unfortunately, you need to file the amended return to report the K-1 you received. The IRS will be looking for the K-1 on your return.

If you received a Schedule K-1 after filing your return, you should amend your return and enter the information from Schedule K-1 in the appropriate section of TurboTax.

If your business is operating at a loss and there is no taxable income for any partner or shareholder to report, the partnership is still responsible for issuing Schedule K-1s.

This is a non-cash expense that the Internal Revenue Service (IRS) allows you to deduct from your taxable income, effectively creating a "paper loss." The paper loss shows up on the K-1 tax form you receive from the property and can often be used to offset your W-2 income.

If you need to make a change or adjustment on a return already filed, you can file an amended return. Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions.

Generally, the omission of income reported on Schedule K-1 from your return will generate an IRS notice regarding the missing income if it is substantial enough to generate a tax liability.

Certain entities and partnerships file Schedule K-1 forms with the IRS and issue them forms to partners and shareholders. While individual taxpayers typically don't file K-1 forms, you can use the information you receive from a K-1 on your personal income tax return.

Line 1 - Ordinary Income/Loss from Trade or Business Activities - Ordinary business income (loss) reported in Box 1 of the K-1 is entered as either Non-Passive Income/Loss or as Passive Income/Loss.

If a taxpayer is nonpassive, any losses that are reported can be claimed against all other income. On the other hand, losses from a passive activity can only be claimed to offset income from other passive activities, unless the interest in the pass-through entity was disposed of.

Ordinary income reported to an individual shareholder on Schedule K-1 from an S corporation is not considered self-employment income. Such income is investment income. It is thus not subject to self-employment tax, nor is it included in the calculation of earned income for the credits that are based on earned income.

Can you accidentally file taxes twice? ›

So, while you may file or submit your tax return twice, only one return will be accepted by the IRS. Therefore, you may submit duplicate tax returns, but only one will actually be accepted and filed.

To Correct a Tax Return Mistake, File an Amendment

Your next move: file an amended tax return. Simply put, an amended return is usually filed because something was incomplete, incorrect or omitted from the original tax return.

1. It's illegal. The law requires you to file every year that you have a filing requirement. The government can hit you with civil and even criminal penalties for failing to file your return.

In general, a K-1 can affect personal taxes in two ways: either by increasing a partner's tax liability or by providing them with a tax deduction. It will likely increase their total tax liability for the year if the K-1 is associated with an income.

If you can't file on time because you did not receive your K-1 timely, you will need to file an extension. This is done on Form 4868, Application for Automatic Extension of Time to File U.S. Income Tax Return. A properly filed extension request will extend the due date to file until October 15, 2023.

Select Update next to the type of K-1 you initially entered (partnership/LLC, S corp, or estate/trust). On the K-1 Summary screen, select Delete next to the K-1 you want to remove. Answer Yes on the following screen. Select Done.

Are K-1 distributions taxable? Sometimes the distribution reported on a K-1 is taxable to the recipient, but that determination depends on the type of distribution. For example, if the distribution is a return of capital, it is not taxable. However, if the distribution is income from the business, it is taxable.