If you received a North Carolina Schedule K-1 from a partnership, S corporation, estate, or trust, you'll need to enter the information into your state return. This form reports your share of North Carolina income, adjustments, credits, and certain taxes paid on your behalf.
Important: Your North Carolina Schedule K-1 may contain information that differs from your federal Schedule K-1. Because North Carolina has its own tax rules and reporting requirements, items such as income, additions, deductions, credits, withholding, and taxes paid on your behalf may not match the amounts shown on your federal form. Be sure to enter the information from your North Carolina Schedule K-1 exactly as reported, even if it differs from your federal Schedule K-1.
What Is a North Carolina Schedule K-1?
A North Carolina Schedule K-1 is issued by a pass-through entity, such as a partnership, S corporation, estate, or trust, to report the portion of income, deductions, adjustments, credits, and withholding allocated to you. The information reported on the Schedule K-1 may be required on your North Carolina individual income tax return.
In our software, use this section to enter the information exactly as it appears on your North Carolina Schedule K-1.
Who Should Complete This Section?
Complete this section if you received any of the following:
- NC K-1 from a partnership
- NC K-1 from an S corporation
- NC K-1 from an estate
- NC K-1 from a trust
You may receive multiple Schedule K-1 forms if you have ownership interests in more than one entity or are the beneficiary of more than one estate or trust.
Program Pathway
- State
- Edit the North Carolina return using the three dots
- Miscellaneous Forms
- NC Schedule K-1 (Partnership/SCorporation/Estate)
Information You May Need to Enter
Depending on the type of Schedule K-1 you received, you may need to enter:
- North Carolina income or loss
- Additions to income
- Deductions from income
- Tax credits
- North Carolina withholding
- Nonresident income attributable to North Carolina
- Tax paid on your behalf by the entity
Enter all amounts exactly as shown on the Schedule K-1 and any supplemental schedules provided with it.
Partnership Schedule K-1
If you received a Schedule K-1 from a partnership, use the information reported by the partnership to complete the applicable sections of your North Carolina return.
Your Schedule K-1 may include your share of North Carolina income, adjustments, credits, and taxes paid on your behalf. Nonresident partners may also see North Carolina-source income and withholding information reported separately.
S Corporation Schedule K-1
If you received a Schedule K-1 from an S corporation, enter the information exactly as shown on the form.
The Schedule K-1 may report your share of income, adjustments, deductions, credits, North Carolina withholding, and other North Carolina-specific items. Nonresident shareholders may also see North Carolina-source income and taxes paid on their behalf by the S corporation.
Estate or Trust Schedule K-1
Beneficiaries of estates and trusts may receive a Schedule K-1 reporting income, deductions, credits, and other tax items that must be reported on their individual tax return. Enter the information from your North Carolina Schedule K-1 and any accompanying statements as provided by the fiduciary.
North Carolina Withholding and Tax Payments
Some Schedule K-1 forms report North Carolina tax withheld or paid on your behalf. When entered correctly, these amounts may be applied as payments on your North Carolina return and can help reduce your tax due or increase your refund.
Be sure to enter withholding and payment amounts exactly as reported on your Schedule K-1.
Additional Information
Review your Schedule K-1 carefully before entering the information into your return.
- Enter each Schedule K-1 separately.
- Include any supplemental schedules that accompany the K-1.
- Do not combine amounts from multiple K-1s.
- Verify all income, credits, and withholding amounts before filing.
Accurate Schedule K-1 entries help ensure your North Carolina return reflects the income, credits, and tax payments reported by the partnership, S corporation, estate, or trust.