Report K-1 income on Form 1040 refers to the income that is reported on Schedule K-1, which is a tax form used to report the income, deductions, and credits of partnerships, S corporations, estates, and trusts.
When a taxpayer receives a Schedule K-1, they need to report the income and other tax-related information listed on the form on their individual tax return, which is Form 1040. The income reported on the Schedule K-1 is typically passed through to the taxpayer from the partnership, S corporation, estate, or trust, and is subject to tax at the individual level.
To Report K-1 Income on Form 1040, the taxpayer will need to include the information from the Schedule K-1 on their tax return. This typically involves filling out Schedule E (Supplemental Income and Loss), which is used to report income or losses from partnerships, S corporations, estates, and trusts. The taxpayer will need to provide the relevant information from the Schedule K-1 on Schedule E, which will then flow through to Form 1040.