How Do I Pay Tax On My Partnership Income?

Income from a partnership flows through, via Schedule K-1, to be taxed on the partners' personal returns. In the case of a general partnership, this income may also be subject to self-employment tax.

If you are not having enough tax withheld from other sources to cover your income tax (and SE tax, if applicable) liability from the partnership, you may need to make quarterly estimated tax payments with Form 1040-ES. (See the Report concerning Estimated Tax Payments in the Individual area for more information.)

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We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

Tax Disclaimer: To ensure compliance with IRS Rules, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.