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Why You're Paying Tax on K-1 Income You Didn’t Receive and What You Can Do About It

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Why You're Paying Tax on K-1 Income You Didn’t Receive and What You Can Do About It

Did you recently receive a K-1 form and now find yourself facing a tax bill for income you never saw in your bank account? This situation often stems from how certain pass-through entities are taxed. Learn why it happens, how pass-through entities work, and how to reduce the impact of phantom income.

By Andrew R. Tavares September 09, 2025