Schedule K-1

Updated: 07 January 2025

What Does Schedule K-1 Mean?

A Schedule K-1 is a tax form that allows an income earner to pass the liability for their income to another party, typically a beneficiary of the earned income.

Insuranceopedia Explains Schedule K-1

The primary purpose of a K-1 form is to transfer tax liability to another party. It is often used to manage assets for beneficiaries of a trust, as it allows them to bypass taxes on those assets.

A trust may file a Schedule K-1 tax form for income earned by the trust but distributed to a beneficiary.

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