How to Report Income From an LLC
- 1). Wait until you get a K-1 schedule in the mail from the LLC. Typically, these are sent out by January 31st each year. The K-1 will detail any money earned or lost with the LLC. The amounts on this form are what you use to report your income.
- 2). Obtain your federal tax form 1040 for filing your income taxes. The form can be obtained from the IRS website and some local post offices and libraries each tax season.
- 3). Get Schedule E to fill out with your form 1040. This is the "Supplemental Income and Loss" form.
- 4). Input the information from the K-1 to Schedule E. It will go under "Part II" of the form. Bring the total income down to line 32. If no other income or loss is reported on the Schedule E, then put the number from line 32 on line 41 at the bottom.
- 5). Complete the rest of your form 1040 as your normally do. Submit the completed form 1040 with Schedule E to the IRS. Use the mailing address on your form or booklet to submit it all. Be sure to include a copy of your K-1 with the tax forms.