Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I received a k1 that says my guaranteed payment is less than…

Customer Question
I received a k1...

I received a k1 that says my guaranteed payment is less than my gross income. my employer withheld taxes. what is going to happen when i file?

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

Do i file my tax return with the information on my k1? or the information on my paystub?

Submitted: 8 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 14 minutes by:
9/28/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 8 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,714
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

As ordinary income, guaranteed payments aren't subject to income tax and FICA tax withholding as a salary would be; instead, guaranteed payments are subject to estimated income taxes and self-employment taxes.

Q1: my employer withheld taxes. what is going to happen when i file?

A1: When you file, you will use the information from the Schedule K-1. Include an explanation indicating that in error, the employer withheld taxes from the guaranteed payment. The guaranteed payment being less than gross income is likely going to raise a red flag with the IRS, but you should be ok as long as you can show that taxes were withheld from the guaranteed payment.

Q2: do i file my tax return with the information on my k1? or the information on my paystub?

A2: You would use the information on the Schedule K-1.

If you do not require additional information regarding this matter. I ask that you be so kind and scroll to the top of the page and select 3 or more stars to positively rate my response so that I can receive credit for assisting you. A 5 star rating is greatly appreciated. Thank you in advance.

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 8 months ago

I would suggest obtaining a corrected Schedule K-1, but since the taxes were withheld and likely already paid in, the Schedule K-1 has to show the actual amount paid to you.

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 8 months ago

The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership's other ordinary income.

Ask Your Own Tax Question
Customer reply replied 8 months ago
my employer has not paid the money to the irs. do i just be honest when i file and let the irs sort it out? or ask my employer to pay me the money that was withheld?
Tax Professional: Tax.appeal.168, Tax Accountant replied 8 months ago

Hello again.

If your employer has not paid the money that was withheld in, let him or her know that they were not supposed to withhold taxes, refund you the money that they withheld as taxes and issue you a corrected Schedule K-1. If the employer refuses to do the above, then I would file the tax return using the information on the Schedule K-1 with an explanation and let the IRS deal with it. When the company files its tax return, a copy of the Schedule k-1 for each partner is filed as well.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,714
4,714 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Income from Trust. Have attached copy of Schedule K-1. I put
Income from Trust. Have attached copy of Schedule K-1. I put the amount on line 17. Mistake? Where? They want a Schedule E if line 17 is correct … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have LLC and my gross income for over 10 years is around
Hello , I have LLC and my gross income for over 10 years is around 50k after deduction expenses my income is around 11k . I went to see my ssn statement and there is no evidence of any income . does t… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
347 satisfied customers
VA form asks for adjusted gross income (disability form). We
VA form asks for adjusted gross income (disability form). We file joint; can we separate his income from mine for the form? How? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Where do I find schedule E for rental income and expense. No
Where do I find schedule E for rental income and expense … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
TurboTax has included a schedule k-1 that doesn't apply to
TurboTax has included a schedule k-1 that doesn't apply to me and won't get rid of it. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,263 satisfied customers
A Schedule K-1 has been received. Beneficiary share of
A Schedule K-1 has been received. Beneficiary share of fiscal year deductions reported in box 11A. 2017 returned has been filed and an amended return must be filed. Where do I get the detailed instruc… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,045 satisfied customers
Looking for estimated tax rate for 500,000 income in 2017.
looking for estimated tax rate for 500,000 income in 2017 … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
Schedule K-1, Form 1041. Sorry. On Schedule K-1, Form 1041.
Sorry. On Schedule K-1, Form 1041. Line 14 Other Information: H, the amount is in parenthesis, does this mean it is a negative $amount. … read more
Carter McBride
Carter McBride
LLM
1,139 satisfied customers
I am trying to enter information from a schedule K-1 form
I am trying to enter information from a schedule K-1 form into turbotax it is asking me to enter code P detail. On my information sheet for box 12, code P the wording is different from what turbo tax … read more
Mike-USACPA
Mike-USACPA
9 satisfied customers
I received a Schedule K-1 Form 1041 for 2017. Do I need to
I received a Schedule K-1 Form 1041 for 2017. Do I need to file this with my 2017 tax return? … read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,714 satisfied customers
I received a schedule K-1 form 1041. My father passed away
I received a schedule K-1 form 1041. My father passed away and had a trust. It is indicated on the form that there were net long term capital gains of $6600. I believe that I have to pay taxes on that… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,371 satisfied customers
Are there any changes on 2017 Forms 4562 and Schedule E (for
are there any changes on 2017 Forms 4562 and Schedule E (for rental property) over previous year 2016? What about Schedule A?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I received a schedule k-1 (form 1065) this year as an
i received a schedule k-1 (form 1065) this year as an individual partner and a '2017 supplemental information' sheet. do i just submit this info with my tax return. do i need to include any of the inf… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,371 satisfied customers
I received a Schedule K-1 for a investment that is held
I received a Schedule K-1 for a investment that is held within my IRA Account. I was informed by the issuing LP that I need to file a form that replaces the need to put the information from the K-1 on… read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
111 satisfied customers
My wife self-employed and she didn't payed estimated taxes
my wife self-employed and she didn't payed estimated taxes for 2017. i am filing joint return. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,371 satisfied customers
I have a question regarding a Schedule K-1 that i received.
hello, i have a question regarding a Schedule K-1 that i received … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
My 16 Schedule E's are not showing up on my tax return,
My 16 Schedule E's are not showing up on my tax return, therefore, my return is not correct. I need help BAD. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
This is in regards to a partnership tax return Form 1065 and
This is in regards ***** ***** partnership tax return Form 1065 and potentially amending it. The only reason for the amendment would be the distribution information on the K-1s was incorrect. Nothing … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x