The partner's tax identification or Social Security number can be truncated on the Schedule K-1 you send to the partner by replacing the first 5 digits with asterisks or Xs.Additionally, list details on the partner's share of liabilities the partner's beginning and ending profit, loss, and capital ownership percentages and a calculation of the partner's capital account for the year-end. In Part II, you must include the name, address, and tax identification or Social Security number for that partner. You must fill out a separate Schedule K-1 for each partner. government agency in charge of managing the Federal Tax Code Go to sourceĮnter information about the partner. X Trustworthy Source Internal Revenue Service U.S. If the estate or trust has more than one beneficiary, you list each beneficiary's proportionate share of the income on their respective Schedule K-1.government agency in charge of managing the Federal Tax Code Go to source X Research source For example, if the beneficiary earned $2,000 in interest income from the trust, they would pay the same taxes on it that they paid for any other interest income. All income has the same character on the beneficiary's tax return as it does for the estate or trust.government agency in charge of managing the Federal Tax Code Go to source

Beneficiaries must include the amount of income distributed to them from the estate or trust in their gross income for that year. Enter the beneficiary's income from the estate or trust in Boxes 1 through 8 of Part III, as appropriate.

K1 tax form example