Schedule K-1 (Form 1065): Schedule K-1 (Form 1065) (2025)
Federal · IRS · Used for tax years 2025
Schedule K-1 (Form 1065) reports a partner’s share of a partnership’s income, deductions, credits, and other tax items for 2025. It also includes information about the partnership and partner, the partner’s ownership shares and liabilities, and changes in the partner’s capital ac
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 receive a Schedule K-1 as a partner, keep it for your records. Generally, you do not file it with your own tax return unless specifically required. Include your share of partnership income on your return if you are required to file, whether or not the income was distributed to you.
When it's due
The supplied text does not give a filing due date for the 2025 Schedule K-1. It does give a separate partner notification deadline:
For a sale or exchange during calendar year 2025 covered by section 751(a), generally notify the partnership in writing within 30 days of the exchange, or, if earlier, by January 15 of the calendar year following the exchange. These exchanges involve amounts attributable to unrealized receivables or inventory items.
An exception applies to sales or exchanges of publicly traded partnership interests for which a broker must file Form 1099-B.
What you'll need
To report your partnership items, have these records available as applicable:
- Your Schedule K-1 and its attached statements, including statements separating income, deductions, and credits by activity.
- Schedule K-3, if attached as indicated in box 16.
- Records needed to track your adjusted basis in the partnership, including contributions, distributions, liabilities, and prior-year losses or deductions carried forward.
- The Worksheet for Adjusting the Basis of a Partner’s Interest in the Partnership.
- Information the partnership provides about property distributions if you must file Form 7217.
How to file
The partnership files a copy of Schedule K-1 with the IRS. As a partner, use the schedule and the partner instructions to report the items on your own tax return. Keep the K-1 rather than attaching it unless specifically required.
The supplied text does not provide a mailing address or e-file instructions for Schedule K-1.
Common mistakes
- Changing an incorrect K-1 yourself. Ask the partnership for a corrected Schedule K-1 instead. Make sure it sends a corrected copy to the IRS.
- Using a disregarded entity’s TIN in item E. The form warns not to do this. The instructions say to use the beneficial owner’s TIN there.
- Overlooking Form 7217 for property distributions. The reminder requires a separate form with your annual return for each date you actually received property subject to section 732. Do not file it for distributions consisting only of money or marketable securities treated as money, payments for services outside your capacity as a partner under section 707(a)(1), or transfers treated as disguised sales under section 707(a)(2)(B).
Questions people ask
Can I owe tax even if the partnership did not pay me anything?
Yes. You may owe tax on your share of partnership income whether or not it was distributed.
Can I deduct the full loss shown on my K-1?
Not necessarily. Basis, at-risk, passive activity, and excess business loss limitations may reduce what you can deduct. Applying the applicable limits is the partner’s responsibility.
Is my capital account in item L the same as my adjusted basis?
No. The instructions say the capital account information is based on the partnership’s books and records and cannot be used to figure your adjusted basis in the partnership.
Why does my K-1 show only the last four digits of my identifying number?
The schedule may show only the last four digits for your protection. The partnership reports your complete identifying number to the IRS.
What do checked boxes 22 and 23 mean?
Box 22 indicates more than one activity for at-risk purposes. Box 23 indicates more than one activity for passive activity purposes. See the attached statements for additional information.