Schedule K-1 (Form 1065): Schedule K-1 (Form 1065) (2024)
Federal · IRS · Used for tax years 2024
Schedule K-1 (Form 1065) reports a partner’s share of a partnership’s income, losses, deductions, credits, and other tax items for 2024. It also includes information about the partnership, the partner’s ownership shares, liabilities, and capital account.
Who files this form
The partnership uses Schedule K-1 (Form 1065) to report each partner’s share of income, deductions, credits, and other items. The partnership files a copy with the IRS.
If you are a partner, use the information to report your share on your tax return, if a return is required. Keep Schedule K-1 for your records. Do not file it with your return unless specifically required.
What you'll need
To use your Schedule K-1, have these records available:
- Your Schedule K-1 and any attached statements.
- Schedule K-3, if attached. Box 16 indicates whether it is attached.
- Records needed to track your adjusted basis in the partnership, including contributions, distributions, changes in liabilities, and losses carried forward.
- The Worksheet for Adjusting the Basis of a Partner’s Interest in the Partnership.
- Separate statements of income, expenses, and other items for each activity when needed for the at-risk or passive activity rules.
How to file
The partnership files a copy of Schedule K-1 with the IRS. The supplied text does not give a mailing address or e-file procedure.
As a partner, report the applicable items on your tax return using the partner’s instructions. Keep your Schedule K-1 rather than attaching it, unless you are specifically required to file it with your return.
Common mistakes
- Changing an incorrect K-1 yourself. Notify the partnership and ask for a corrected Schedule K-1. Do not change your copy. Make sure the partnership sends the corrected copy to the IRS.
- Assuming every reported loss is deductible. You are responsible for applying any limits on losses and deductions. Your allowed amount may be less than the amount on Schedule K-1.
- Using the capital account as your adjusted basis. Item L is based on the partnership’s books and records and cannot be used to figure your adjusted basis.
- Entering a disregarded entity’s TIN in item E. The form warns not to use that TIN in item E. The instructions call for the beneficial owner’s TIN there.
Questions people ask
Can I owe tax if the partnership did not distribute income to me?
Yes. You may owe tax on your share of partnership income whether or not it was distributed.
Why does my K-1 show only the last four digits of my identifying number?
The partnership may shorten the number on your copy for your protection. It reports your complete identifying number to the IRS.
What does a checked box in item D mean?
It means you are a partner in a publicly traded partnership (PTP). The instructions provide special rules for PTPs.
What happens to losses that exceed my adjusted basis?
Losses and deductions disallowed because of the basis limit are suspended and carried forward to a tax year when you have adjusted basis available. Other limits may also apply.