The Schedule K-1 (Form 1065) is a document prepared by a partnership as part of filing its Form 1065, U.S. Return of Partnership Income. The partnership then provides each partner a Schedule K-1 1065 Form reflecting their share of income, deductions, credits, and other items that the partner will need to report on their individual tax return (Form 1040).
When preparing your individual tax return, the entries made in the Schedule K-1 entry fields will generally flow to the appropriate form or schedule in the return. However, some entries do not automatically flow to the return and it's up to the taxpayer to determine the extent of their applicability to the return.
The actual Schedule K-1 consists of three parts:
- Part I - Information about the Partnership - This section contains basic information about the partnership such as its name and address as well as indication if the partnership is a Publicly Traded Partnership (PTP).
- Part II - Information about the Partner - This section contains information about the partner and their investment in the partnership.
- Part III - Partner’s Share of Current Year Income, Deductions, Credits, and Other Items - This section is used to report the partner's share of any of the partnership's income, deductions, credits, etc.
Where does the K-1 1065 form get entered?
If you received a Schedule K-1 (Form 1065) from a partnership, you can enter this in your account by going to:
- Income (select my forms)
- Less Common Income
- K-1 Earnings
- Schedule K-1 Form 1065
My entry cannot be made in the program. What do I do?
Some items reported on your Schedule K-1 (Form 1065) may need to be entered directly into a specific form instead of the K-1 entry screen. Please refer to the links below to find out if this is case for any items that do not have an entry field located in the K-1 entry screen.
Can I file the business 1065 using this program?
No, you cannot file the partnership business return using this software. You can file only your portion of the Schedule K-1 you received as a partner along with your other income as part of your individual income tax return.