Schedule K 1 P Income Tax Business Tax Illinois Form

Instructions and help about Schedule K 1 P Income Tax Business Tax Illinois

if you're the beneficiary of a trust or an estate a partner in a partnership or a shareholder in an S corporation you're going to have income or losses from those entities that will have to be reported on your tax return you may have received one of these forms called a schedule K-1 and wondered what to do with it this video attempts to answer that question I'm the tax geek and here are k1s oversimplified [Music] trust Estates Partnerships and S corporations all have the potential for generating income rather than paying taxes on this income directly these entities usually pass this income along to the people or other parties who comprise the entity who then pay taxes on their shares of the income thus these types of organizations are known as pass-through entities all pass-through entities divide the income they generate among their beneficiaries or members ing to the trust document or will partnership agreement LLC or corporate charter since different pass-through entities distribute