What is the difference between a K1 and 1099?

The difference between a K-1 and a 1099 is straightforward:

• A K-1 form is used for partnerships, reporting tax items that need to be declared by the owners. For example, if you are part of a partnership, an LLC, or an S Corporation, you would receive a Schedule K-1 detailing your share of the income, deductions, and credits.
• A 1099 form, on the other hand, is generally a tax information document for single ownership. For example, if you own a bank account that earns interest, the bank will issue a 1099-INT to report the interest income. Similarly, a 1099-MISC is issued to independent contractors for non-employee compensation.

Key Difference:

• 1099s are generally for reporting income for a single owner or individual.
• K-1 forms are used for partnerships or investments with at least two owners that must file a partnership tax return.

Examples of K-1 and 1099 Situations:

•If you are a partner in a business or investment fund, you will need to report your share of income using a K-1 tax form.

•If you are an independent contractor or earn interest income, you will receive a 1099 form to report this to the IRS.

Americans Overseas can help you with your K-1 and 1099

If you’re an American living abroad, understanding the nuances of K-1 forms and 1099 forms can be challenging. Americans Overseas offers a large independent network of U.S. tax accountants and financial planners who specialize in helping Americans living overseas.

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. 

Contact us for more information