New to K-1 tax filing (partner)- looking for suggestions on references

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CoastalWinds
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Joined: Sat Apr 06, 2019 8:28 pm

New to K-1 tax filing (partner)- looking for suggestions on references

Post by CoastalWinds » Sat Nov 16, 2019 1:03 pm

Next year, DH and my tax situation will change. Up to this point, we have always been W-2 employees and have done our own tax returns. Next year, he becomes partner (considered self-employed) in a law firm and will receive a K-1 for income/profit. (I will still be a W-2). I realize this switch to K-1 / self-employed will have significant changes in how we do taxes, although I have little knowledge of exactly what those changes are. In true BH fashion, I would like to learn as much as I can through self-education.

For other K-1 recipients (lawyers, doctors), what “crash course” educational resources, books, etc. would you recommend?
Last edited by CoastalWinds on Sat Nov 16, 2019 4:13 pm, edited 1 time in total.


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HueyLD
Posts: 7218
Joined: Mon Jan 14, 2008 10:30 am

Re: New to K-1 tax filing (partner)- looking for suggestions on references

Post by HueyLD » Sat Nov 16, 2019 7:54 pm

The IRS has a list of recommended readings:

https://www.irs.gov/businesses/small-bu ... businesses

strafe
Posts: 964
Joined: Sat Mar 03, 2007 12:49 pm

Re: New to K-1 tax filing (partner)- looking for suggestions on references

Post by strafe » Sat Nov 16, 2019 8:01 pm

The main differences are:
1) you will need to file quarterly estimated taxes -- unless you can withhold enough with your W-2 job
2) you will need to pay self-employment tax

Paying estimate tax gets complicated if income is lumpy throughout the year (bonuses, etc). Learn about the the 110% safe harbor rule to avoid penalties -- simplest route if you are doing taxes yourself.

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