Minnesota: Schedules KF, KS, and KPI

If you received income from a Minnesota estate, trust, S corporation, or partnership, you may also receive a Minnesota Schedule KF, KS, or KPI. These schedules contain Minnesota-specific tax information that doesn't always appear on your federal Schedule K-1.

You may need information from both your federal Schedule K-1 and your Minnesota schedule to complete your 2026 Minnesota income tax return. Enter each form separately in the program.

Which Minnesota Schedule Did I Receive?

The type of schedule you receive depends on the entity that distributed 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 schedules are not replacements for the federal Schedule K-1. You should enter both forms if you received them.

Where Do I Enter Schedule KF, KS, or KPI?

Follow these steps in the Minnesota return:

1. Go to State Section
2. Three dots to Edit Minnesota State Return
3. Choose Miscellaneous Forms
4. Select Schedule KF, KS, or KPI

Before entering a Minnesota schedule, complete the federal Schedule K-1 section in the program.

Schedule KF: Beneficiary's Share of Minnesota Tax Information

You may receive Schedule KF if you are a beneficiary of an estate or trust with Minnesota tax items.

Schedule KF can report:

• Minnesota additions to income
• Minnesota subtractions from income
• Minnesota-source income
• Federal bonus depreciation adjustments
• Minnesota income tax withholding
• Minnesota credits
• Other federal-to-state tax law adjustments

Enter the information exactly as it appears on the schedule. The program will place the amounts on the appropriate Minnesota forms automatically.

Schedule KS: Shareholder's Share of Minnesota Income and Credits

You may receive Schedule KS if you are a shareholder in an S corporation that has Minnesota filing requirements.

Schedule KS may include:

• Interest from non-Minnesota state or municipal bonds
• State income taxes deducted by the S corporation
• Federal bonus depreciation adjustments
• Employee Retention Credit adjustments
• Interest from U.S. government obligations
• Minnesota withholding
• Pass-through entity (PTE) tax credits
• Other Minnesota additions, subtractions, and credits

Minnesota residents and nonresidents may both receive Schedule KS. Shareholders will also receive this schedule when the S corporation elects Minnesota pass-through entity tax treatment.

Schedule KPI: Partner's Share of Minnesota Income and Credits

You may receive Schedule KPI if you are an individual, estate, or trust partner in a partnership.

Schedule KPI may include:

• Income assigned to Minnesota
• Interest from non-Minnesota state or municipal bonds
• State income taxes deducted by the partnership
• Federal bonus depreciation adjustments
• 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. Nonresidents generally report only the portion assigned to Minnesota.

How Do I Enter the Schedule?

After completing your federal Schedule K-1, enter the Minnesota schedule information in the Minnesota return.

Select:

• The taxpayer or spouse who received the schedule
• The schedule type:
  • Schedule KF (estate or trust)
  • Schedule KS (S corporation)
  • Schedule KPI (partnership)

You'll then enter information such as:

• Business name
• Additions to income
• Subtractions from income
• Credits
• Minnesota withholding or composite income
• Schedule KPINC, KFNC, or KSNC information, if applicable

Always use the Minnesota schedule when entering Minnesota-specific amounts rather than the federal Schedule K-1.

Where Do the Amounts Flow on the Minnesota Return?

Depending on the type of income, deduction, credit, or payment reported, information from Schedules KF, KS, and KPI may transfer to:

• Form M1
• Schedule M1M
• Schedule M1MB
• Schedule M1W
• Schedule M1C
• Schedule M1REF
• Schedule M1NR

For example, municipal bond interest from another state may flow to Schedule M1M, while business-related adjustments may transfer to Schedule M1MB.

What If the Schedule Shows Minnesota Tax Withholding?

If Schedule KF, KS, or KPI reports Minnesota income tax withholding:

• Enter the withholding exactly as shown.
• The amount will transfer to Schedule M1W.
• The withholding will then be applied to your Minnesota tax liability on Form M1.

Do not enter the same amount again as an estimated tax payment. Doing so may cause the withholding to be counted twice.

What If the Schedule Shows a Pass-Through Entity Tax Credit?

Some partnerships and S corporations pay Minnesota pass-through entity tax on behalf of their owners.

If your schedule reports a pass-through entity tax credit:

• Enter the entity's Minnesota tax ID number when requested.
• Enter the credit amount shown on your schedule.

The program will calculate and report the credit on the appropriate Minnesota credit schedules.

Do I Need to Include the Schedule With My Return?

You should keep a copy of every Schedule KF, KS, or KPI for your records.

If you are filing a paper return, include any required supporting schedules. Minnesota specifically requires certain taxpayers to include Schedule KPI when filing Minnesota returns, and credits may be denied if required documentation is missing.

What If I Receive a Corrected Schedule?

If you receive a corrected or amended Schedule KF, KS, or KPI after filing:

1. Compare the revised amounts to what was originally reported.
2. Determine whether the changes affect:
   • Income
   • Deductions
   • Credits
   • Withholding
   • Refund amount
   • Balance due
3. File an amended Minnesota return if necessary.

A corrected schedule can change your Minnesota tax even when your federal return remains the same.

Example

Jordan is a shareholder in an S corporation and receives:

• A federal Schedule K-1
• A Minnesota Schedule KS
• Minnesota withholding reported on Schedule KS
• A Minnesota business income adjustment

Jordan first enters the federal Schedule K-1. Next, Jordan enters the Minnesota Schedule KS information in the Minnesota return.

The program transfers the Minnesota business adjustment to the proper Minnesota schedule and applies the withholding as a payment toward Jordan's Minnesota tax.