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.
