Do I have to enter K1 and W2 if from the same LLC partnership/business? There is an overlap in income on W2 and K1 and TT is seeing them as two different income sources

Forum|Forum|6 years ago
June 6, 2019
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TurboTax Self Employed Online

stravis

There shouldn't be any overlap in income between the W-2 and the K-1. The W-2 shows earnings you received by paycheck as an employee, which should have had payroll taxes deducted and sent in by the company.

The K-1 shows your share of the partnership's income or loss that is yours because you are a partner. You may or may not have received some of this as a cash distribution, but it is still income to you.

These are two distinctly different types of income, and need to be shown as different income sources.

mattcrossette

I did receive a k-1 and a w-2 that both report the exact amount for the same income... did my tax guy do something wrong? I have a tax guy that does the business s-corp tax and then I was going to just do my personal through turbo tax. Do i just ignore the k-1 and use the w-2?

wheelman666

YEs your tax guy definitely did something wrong.

the W2 and the K1 are totally different types of income.

the W2 shows what you were paid via Paycheck, what you paid in taxes, 401K contributions etc.

the K1 shows the company gain or loss that as an S corp will pass through to your taxes and will adjust your overall income, up or down.

Yeah something is seriously wrong

jcastrillo1

So if there is 2 partners in a LLC they don’t need a W-2 only Schedule K-1 to report their individual income?

AmeliesUncle

@jcastrillo1 wrote:
So if there is 2 partners in a LLC they don’t need a W-2 only Schedule K-1 to report their individual income?

Correct, Partners do NOT receive a W-2.

Sarah1168

The IRS is penalizing me (Charge 549) for "failure to file forms W-2". It's my understanding that an S-Corp only needs K-1 if there are no employees and only 2 equal shareholders. This is also for a company that closed and made no money that year, therefore was a final return.

Am I correct that filing a final 1120S without W-2 is ok?

Thank you!