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 FAQ concerning Estimated Tax Payments in the Individual area for more information.)

(c) Copyright 1995-2015 by TaxLogic