If you received Minnesota income from an estate, trust, S corporation, or partnership, you may also receive a Minnesota Schedule KF, KS, or KPI. These schedules report your share of Minnesota-specific income adjustments, credits, withholding, and other tax information needed to complete your 2025 Minnesota return.
Which Schedule Did I Receive?
The schedule you receive depends on the type of entity that provided the income:
- Schedule KF is issued by an estate or trust to a beneficiary.
- Schedule KS is issued by an S corporation to a shareholder.
- Schedule KPI is issued by a partnership to an individual, estate, or trust partner.
These Minnesota schedules are separate from the federal Schedule K-1. Enter both the federal Schedule K-1 and the applicable Minnesota schedule in the program.
Program Entry
- State Section
- Edit Minnesota State Return
- Miscellaneous Forms
- Schedule KF, KS, or KPI
Schedule KF: Beneficiary’s Share of Minnesota Taxable Income
You may receive Schedule KF if you are a beneficiary of an estate or trust that has Minnesota income, income adjustments, withholding, or credits to report.
Schedule KF may include your share of:
- Minnesota additions and subtractions from income
- Minnesota-source income
- Federal bonus depreciation adjustments
- State income tax withheld on your behalf
- Minnesota credits
- Federal tax law adjustments that Minnesota treats differently
Enter the amounts from Schedule KF exactly as shown. The program will carry each entry to the appropriate Minnesota schedule or tax form.
Schedule KS: Shareholder’s Share of Income, Credits, and Modifications
You may receive Schedule KS if you are a shareholder in an S corporation that has Minnesota income, adjustments, withholding, or credits to report.
Schedule KS may include your share of:
- Interest from non-Minnesota state or municipal bonds
- State taxes deducted by the S corporation
- Federal bonus depreciation
- Employee Retention Credit adjustments
- Interest from U.S. government obligations
- Minnesota withholding
- Pass-through entity tax credits
- Other Minnesota additions, subtractions, and credits
Resident and nonresident shareholders may receive Schedule KS. Minnesota also requires the schedule for all shareholders when the S corporation makes a Minnesota pass-through entity tax election.
Schedule KPI: Partner’s Share of Income, Credits, and Modifications
You may receive Schedule KPI if you are an individual, estate, or trust partner in a partnership that has Minnesota income, adjustments, withholding, or credits to report.
Schedule KPI may include your share of:
- Partnership income assigned to Minnesota
- Interest from non-Minnesota state or municipal bonds
- State income taxes deducted by the partnership
- Federal bonus depreciation
- Minnesota withholding
- Pass-through entity tax credits
- Installment-sale information
- Other Minnesota additions and subtractions
Minnesota residents are generally taxed on their entire distributive share of partnership income. Nonresident partners generally use Schedule KPI to report the portion assigned to Minnesota.
How Do I Enter These Schedules?
Complete the federal Schedule K-1 section first. Then, in the Minnesota return, select who is filing (taxpayer or spouse) and the type of Minnesota schedule you received:
- Schedule KF for an estate or trust
- Schedule KS for an S corporation
- Schedule KPI for a partnership
Enter the following information when prompted:
- Business Name
- Additions to Income
- Subtractions from Income
- Credits
- Withholding or Composite Income
- Schedule KPINC/KFNC/KSNC
Use the Minnesota schedule, not the federal Schedule K-1, when entering Minnesota-specific amounts.
Where Do the Amounts Appear on My Return?
Depending on the type of entry, amounts from Schedules KF, KS, and KPI may flow to:
- Schedule M1M for individual income additions and subtractions
- Schedule M1MB for business income additions and subtractions
- Schedule M1W for Minnesota income tax withheld
- Schedule M1C for nonrefundable credits
- Schedule M1REF for refundable credits
- Schedule M1NR for income assigned to Minnesota
- Form M1 for the final tax, payment, refund, or balance-due calculation
For example, Schedule KPI directs non-Minnesota municipal bond interest to Schedule M1M and certain state taxes or depreciation adjustments to Schedule M1MB.
What If the Schedule Shows Minnesota Withholding?
If Schedule KF, KS, or KPI reports Minnesota income tax withheld, enter the withholding exactly as shown. The program will report it on Schedule M1W, and the total Minnesota withholding will flow to Form M1.
Do not enter the same withholding a second time as an estimated payment.
What If the Schedule Shows a Pass-Through Entity Tax Credit?
A partnership or S corporation may have paid Minnesota pass-through entity tax on behalf of its owners. If your schedule reports a pass-through entity tax credit, enter the entity’s Minnesota tax ID and your credit amount when prompted.
The program will use this information to report the credit on the appropriate Minnesota credit schedule.
Do I Need to Include the Schedule With My Return?
Include the applicable Minnesota schedule with your return when required. Minnesota specifically instructs partners to include Schedule KPI with Form M1 or Form M2, and credits may be disallowed if required supporting schedules are not included.
Keep a copy of every Schedule KF, KS, or KPI with your tax records.
What If I Receive a Corrected Schedule?
If you receive an amended or corrected Schedule KF, KS, or KPI after filing, compare it with the amounts originally entered. You may need to file an amended Minnesota return if the correction changes your income, deductions, withholding, credits, refund, or balance due. Minnesota’s KPI instructions specifically direct recipients to amend when an amended schedule changes reported income or deductions.
Example
Jordan is a shareholder in an S corporation and receives:
- A federal Schedule K-1
- A Minnesota Schedule KS
- Minnesota tax withholding reported on Schedule KS
- A Minnesota business-income adjustment
Jordan enters the federal Schedule K-1 first, then enters the Minnesota Schedule KS information in the state return. The program transfers the business adjustment to the appropriate Minnesota schedule and reports the withholding as a payment toward Jordan’s Minnesota tax.
Important
- Enter the schedule exactly as issued by the estate, trust, S corporation, or partnership.
- Do not combine multiple schedules into one entry. Enter each Schedule KF, KS, or KPI separately.
- Do not enter Minnesota withholding as both withholding and an estimated payment.
- If an amount is blank or zero on the schedule, do not estimate it.
- Contact the entity that issued the schedule if information is missing or appears incorrect.
Additional Information
2025 Federal Nonconformity for Income Tax
Schedule KPINC
Schedule KFNC
Schedule KSNC