Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 415

What form is used to show the income of a self-employed applicant who is part of a partnership?

K-1

The K-1 form is utilized to report income, deductions, and credits of a partner in a partnership. When individuals are self-employed and part of a partnership, they do not receive a traditional W-2 form, which is meant for employees. Instead, they will receive a K-1 from their partnership, which details their share of the partnership’s income, losses, and other tax-related items. It serves as a crucial document that self-employed individuals must include in their personal income tax returns, allowing the partnership’s financial information to be accurately reported by each partner. This makes the K-1 the appropriate choice for showing the income of a self-employed applicant who is part of a partnership.

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Schedule C

W-2

1099

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