K-1
K-1 income is not withheld. It needs estimates even if RSUs look fine.
Reviewed August 21, 2026. About. Not tax advice.
K-1 (partnership / LLC) income is generally not withheld. Estimated tax is the collection method. The Austin founder sample — $160k W-2, $90k RSUs, $180k other/K-1 — shows $68,770 still due, because the desk treats “other” as un-withheld and RSUs as 22% supplemental. A W-2-only HENRY can sometimes skate on salary withholding; a founder cannot.
On the Austin sample
Still due $68,770. Next 1040-ES $34,385 on September 15, 2026.
FAQ
- Does the desk run a real K-1?
- No. You type a number. Guaranteed payments, 199A, basis, and separately stated items are CPA work. The flag exists so you do not ignore it.
- Can W-4 extra cover K-1?
- Yes in cash terms if salary is large enough. Safe-harbor math still cares about dates vs withholding. Many founders just write 1040-ES.
Sources
- IRS Publication 15 (Circular E) — Supplemental wage withholding: 22% up to $1 million, 37% above.
- IRS tax year 2026 inflation adjustments (Rev. Proc. 2025-32) — 2026 federal brackets and standard deduction.
- IRS estimated taxes — 1040-ES installment dates and underpayment penalty.