Schedule K-1 (Form 1065) is a source document prepared by a partnership as part of filing its Form 1065, U.S. Return of Partnership Income. The partnership provides each partner a Schedule K-1 reflecting the partner’s share of income, deductions, credits, and other items that the partner will need to report on their individual tax return.
In TaxSlayer ProWeb, the partnership Schedule K-1 is entered in a menu specifically designed for it. Some amounts entered will flow to the appropriate form or schedule in the tax return, while other amounts require the preparer to determine if and where they need to be reported in the tax 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). (Certain items on the K-1 are treated differently in the partner's individual tax return depending on whether or not the partnership is a PTP.)
- Part II - Information about the Partner - This section contains information about the partner and their investment in the partnership. Specifically, this section (a) identifies whether the partner is a general or limited partner, (b) reports the partner's share of profit, loss, and capital, and (c) indicates whether the partner’s share of liabilities is recourse or nonrecourse.
- 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.
To assist you in entering the K-1 in the individual income tax return, read the IRS instructions linked below as well as any additional information the partnership provided the taxpayer/partner with the K-1.
To enter Schedule K-1 (Form 1065) in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Income
- Other Income
- K-1 Earnings - Select Begin next to Schedule K-1 (Form 1065).
See below for more information on each part of the Income section of the Schedule K-1 1065 Menu.
Additional Information:
IRS: Partner's Instructions for Schedule K-1 (Form 1065)
ProWeb: Form 1040 - Schedule K-1 (Form 1065) - Entity Information
ProWeb: Form 1040 - Schedule K-1 (Form 1065) - Income