What is the difference between a K1 and 1099?
The difference between a K1 and a 1099 is:
A K1 is used for a partnership, reporting tax items that need to be declared by the owners.
A 1099 is generally a tax information document for only one owner, one person. An example would be: if a person had a bank account and in that bank account there were sufficient funds that earned interest from the bank. The bank would then issue a 1099 every year, to report to the Internal Revenue Service (IRS) and to provide to the taxpayer how much interest income was earned during the year.
So 1099s are generally only used for single ownership tax reporting, whereas a K1 form is used when you have at least two owners of a business or an investment fund that must file a partnership tax return.
Americans Overseas can help you with your K1 and 1099
Americans Overseas offers a large independent network of US tax accountants and financial planners, specialized for Americans living abroad. Based on your personal situation, we provide information and introduce you to the appropriate expert in our Americans Overseas network, free of charge and free of any obligation.
