Partnerships file
Form 1065 (PDF),
U.S. Return of Partnership Income, to report income and expenses.
A partnership does not pay tax on its income but “passes through” any profits or losses to its partners. Generally, the partnership is required to prepare and give partners a
Schedule K-1 (Form 1065) (PDF),
Partner’s Share of Income, Deductions, Credits, etc.
The partners report the information from the K-1 on their own returns and pay any taxes due, including estimated
taxes.
How To Pay Estimated Tax
Because partners are not employees of the partnership, no withholding is taken out of their distributions to pay the income and self-employment taxes on their
Forms 1040 (PDF). The partners may need to pay estimated tax payments using
Form 1040-ES (PDF).
There are five ways to pay estimated tax:
Credit an overpayment on your 2011 return to your 2012 estimated
tax.
Send in your payment (check or money order) with a payment voucher from Form
1040-ES.