You should report Box 14, 15, 17, 18, and 20 information from your Schedule K-1 Form 1065 under the
- Federal Section
- Income - Select my forms
- Less Common Income
- K-1 Earnings
- Schedule K-1 Form 1065
- Credit and Other Information
This section of the program contains information for Part III of Schedule K-1 1065. Please be aware that the program does not allow for direct entries for all Box 14-20 information. You can review this article for any Box 20 codes that are not included in the Schedule K-1 entry.
Box 14 Self Employment Earnings (Losses)
Code A - Net Earnings or Loss from Self Employment Income
If there is a positive amount reported to you in this box, please report the amount as it is reported to you. This will be reduced appropriately by the program by any section 179 deduction you previously reported. If there is a loss reported to you, please report the deductible amount as a negative in this field. You can review the loss limitations here.
Code B - Gross Farm Income (or Fishing)
Report the amount of income as it is reported to you in Box 14 Code B of your form. This income will pull to Schedule E automatically. However, if you elect to use the optional farm method to calculate self-employment tax, you will need to make a manual entry under the Federal Section > Other Taxes > Self-Employment Tax (Schedule SE). You can review this optional farm method information in these Schedule SE instructions.
Code C - Gross Non-Farm Income
Report the amount as it is reported to you in Box 14 Code C. This amount will be included in the self-employment income total and used to calculate self-employment tax appropriately. If you wish to elect to use the optional non-farm method, you will need to make a manual entry under the Federal Section > Other Taxes > Self-Employment Tax (Schedule SE). You can review this optional non-farm method information in these Schedule SE instructions.
Box 15 Credits
Code O - Back up Withholding
Report the amount as it is reported to you in Box 15 Code O. This is a taxpayer's share of the Credit for Backup Withholdings on dividends, interest, and other types of income. It will pull to the 1040 form appropriately with a statement for the partnership and entity information.
There are other Box 15 Codes that TaxSlayer does not currently support direct entries in this section. If you have another Box 15 Code, please review these Partnership instructions and you can contact us for further information regarding that specific credit.
Box 16 Foreign Transactions
These transactions cannot be directly reported within the K-1 of the program. The amounts may affect any Foreign Tax Credit Form 1116 entries you make in the Federal Section > Deductions > Credits > Foreign Tax Credit Form 1116 section, but please review these Partnership Instructions and Foreign Tax Credit Form 1116 Instructions prior to making entries for that credit.
Box 17 Alternative Minimum Tax Items
Code A - Post 1986 depreciation adjustment
Report this amount as it is reported to you on your form box 17 Code A. This amount will pull to the depreciation Form 6251 appropriately.
Code B - Adjusted Gain or Loss
Report the amount as it is reported to you with Box 17 Code B. This adjusted gain or loss will appropriately pull to the depreciation Form 6251.
Code C - Depletion (other than gain and oil)
Report the amount as it is reported to you so that this depletion adjustment will be reported on Form 6251.
Box 18 Tax Exempt Income and Nondeductible Expenses
Code A - Tax Exempt Interest Income
Report the amount of tax-exempt interest as it is reported to you in Code A. This will accurately pull to the 1040 Line 2a.
Code B - Other Tax-exempt Income
Amounts reported as Code B will increase your basis of interest in the partnership. However, this amount will not be included as income on your tax return. You can find additional information about how to adjust your basis in the attached statement from the partnership. Included in this information is a description of the income as well as any exemption reasons under section 892.
Code C - Nondeductible expenses
Amounts reported in Code C are not considered deductible as these are expenses paid or incurred by the partnership. You will use this amount to adjust your basis of interest in the partnership.
Box 19 Distributions made to you, the partner or member, during the year
Not reported directly within the program because these codes are not reported on your return but can affect your overall basis in the partnership.
Code A - Cash & Marketable Securities
This is the cash and marketable securities distributed to the taxpayer by the partnership. These items reduce the basis that the taxpayer has in the partnership so please be sure you adjust your basis appropriately in your records.
Code B - Distributions subject to section 737
This is the amount of section 737 property which is property that was contributed to the partnership by another partner. This should adjust your basis in the partnership for your records. In addition to a basis reduction there may be a requirement to recognize a gain on any distribution of property designated as section 737 property. Please see the partner's instructions provided by the partnership or contact the issuer directly for further information on the treatment of this distribution.
Code C - Other Property
This amount includes any property distributed to the taxpayer that is not cash, marketable securities, or property that was contributed to the partnership by another partner. These items reduce the basis that the taxpayer has in the partnership and are not reported on the tax return directly. See the partner's instructions provided by the partnership for further information on the type of property distributed and the treatment of this distribution.