41-018: IA 1065 Schedule K-1 41-018 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 1065 Schedule K-1 reports a partner’s share of income, deductions, and Iowa modifications, showing federal/all-source amounts and amounts attributable to Iowa. It also reports Iowa composite tax paid on the partner’s behalf, the Iowa pass-through entity tax (PTET) cre
Who files this form
The partnership must include completed Iowa Schedule K-1s for all partners, including any additional attachments, with its IA 1065 Partnership Return.
Partners may have an Iowa filing requirement even if they are not Iowa residents. The partnership must file a composite return on behalf of its nonresident partners, except under certain circumstances, and should notify partners if it has done so.
A partner must file a return to claim any composite, pass-through entity tax (PTET), or other tax credits.
What you'll need
Have the following information available to complete the 2025 schedule:
- Partnership or LLC name, address, and federal employer identification number (FEIN).
- Partner name, address, taxpayer ID number, residency status, entity type, and ownership percentage.
- Partner’s share of Iowa receipts, receipts everywhere, and total nonbusiness income.
- Partnership Business Activity Ratio (BAR) from IA 1065, Schedule E, line 13.
- Partner’s federal/all-source amounts and amounts attributable to Iowa for the income, deduction, and modification items listed in Part II.
- Iowa composite tax paid on the partner’s behalf on the 2025 IA PTE-C and the Iowa PTET credit reported to the partner.
- Iowa credit amounts, tax credit codes, and certificate numbers for Part IV.
The form also asks whether the partnership made a PTET election for the tax year and whether additional attachments are included.
How to file
Include completed Iowa Schedule K-1s for all partners, with any additional attachments, with the IA 1065 Partnership Return.
The form does not provide a mailing address or e-filing directions. For filing information for individuals, corporations, and other entities, visit revenue.iowa.gov or call 515-281-3114 or 800-367-3388.
Common mistakes
- Leaving out schedules or attachments. Completed Iowa Schedule K-1s for all partners, including additional attachments, must accompany the IA 1065 Partnership Return.
- Assuming nonresidents have no Iowa filing requirement. The form warns that partners may have an Iowa filing requirement even if they are not residents.
- Expecting to claim credits without filing a return. A return must be filed to claim composite, PTET, or other tax credits.
Questions people ask
What does the 2025 IA 1065 Schedule K-1 report?
It reports a partner’s share of Iowa income, deductions, modifications, and credits, along with partnership and partner information.
Where does the partnership’s Business Activity Ratio come from?
Use the BAR from IA 1065, Schedule E, line 13.
Where are composite tax payments and PTET credits reported?
Part III, line 1 reports Iowa composite tax paid on behalf of the partner on the 2025 IA PTE-C. Part III, line 2 reports the Iowa PTET credit reported to the partner.
Should amounts include cents?
Yes. The form directs you to enter dollars and cents.