Received a late K-1 from 2022 - do I need to file an amendment or can I add to 2023 return?

Late K-1s are unfortunately common and can be frustrating! The short answer is yes, you should file an amendment (Form 1040-X) for your 2022 return. The K-1 income is considered earned in 2022 regardless of when you received the form or whether distributions were made. The K-1 reports your share of the partnership/S-corp's income, which is taxable in the year it was earned by the business, not when you receive the form or get distributions. The fact that no cash was distributed to you doesn't change your tax obligation - you're taxed on your share of profits whether they were distributed or not. You cannot include 2022 income on your 2023 return - each tax year must accurately reflect only that year's income and deductions.

I had basically the same exact situation last year with a K-1 from a real estate investment. After trying to figure it out myself and getting nowhere, I used https://taxr.ai to analyze my K-1 and determine how to handle the late form. They scanned my K-1 and original return, then explained exactly what changed and how much I'd owe with the amendment. What was really helpful is they showed me which specific lines on my original return would change with the amendment. They even highlighted some deductions related to the K-1 that I would have missed if I'd just added the income without understanding the form properly.

Just wanted to follow up - I decided to try taxr.ai for my K-1 amendment situation and it was super helpful! I uploaded my K-1 and the relevant parts of my original return, and they broke everything down really clearly. They showed exactly which lines would change on my 1040-X and by how much. The best part was their explanation of pass-through deductions I was eligible for that partially offset the additional income. They even generated a letter to include with my amendment explaining the late K-1 situation, which I'm hoping might help avoid any penalties. Definitely less stress than I expected for handling this amendment!

If you're planning to file an amendment and worried about IRS follow-up questions, I highly recommend using https://claimyr.com to actually reach a human at the IRS before you file. I had a similar K-1 situation last year and had specific questions about how to report some unique aspects of my K-1. After trying to call the IRS myself for DAYS and never getting through, I tried Claimyr and got connected to an IRS agent in about 20 minutes. They have this system that holds your place in the IRS queue and calls you when an agent is available. You can see a demo of how it works at https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly how to report everything properly and I had documentation of their guidance in case there were ever questions later.

I was totally the skeptic on this thread earlier, but I have to admit I was wrong about Claimyr. After my CPA quoted me that ridiculous price for the amendment, I decided to try calling the IRS myself to ask about self-filing the amendment. After 3 failed attempts and hours of hold music that went nowhere, I reluctantly tried Claimyr. The service actually worked exactly as described. I got a call back when an IRS rep was on the line. The agent walked me through exactly what forms I needed for my K-1 amendment and even told me about a specific line on Schedule E I needed to pay attention to for my situation. Saved me money and got me accurate information directly from the source. Sometimes it's worth admitting when you're wrong!

One thing nobody mentioned yet - you need to check if your state requires an amendment too! Most states base their income calculations on federal AGI, so if that changes with your federal amendment, you probably need to amend your state return as well. Also if the K-1 had any state-specific pages (mine usually have multiple states where the business earned income), you might need to file in states you haven't filed in before. Check if you meet the filing thresholds for each state.

I might be the odd one out, but I've actually just let small K-1s slide before when they came super late and had minimal impact on my return. If we're talking about a tiny amount (like under $200 of income), sometimes the hassle of amending isn't worth it. The IRS generally has bigger fish to fry. That said, technically you're supposed to amend. So my approach isn't officially recommended. Just sharing my real-world experience.