Schedule E-2: Partnership and S Corporation Income and (Loss) (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule E-2 reports income and losses from partnerships and S corporations for Form 1 and Form 1-NR/PY filers. It includes passive and non-passive income and losses, the Section 179 expense deduction, and the refundable PTE Excise Credit claimed from the entity's M
Who files this form
Form 1 and Form 1-NR/PY filers must use Schedule E-2 to report income and losses from partnerships and S corporations.
File a separate Schedule E-2 for each entity.
What you'll need
The form calls for the following documents and information, as applicable:
- Your name and Social Security number.
- The entity's name and federal identification number.
- U.S. Schedule K-1 for passive income, non-passive income, and non-passive loss amounts.
- U.S. Form 4562 for the Section 179 expense deduction.
- The Massachusetts K-1 issued by the entity for the amount of the 90% refundable PTE Excise Credit claimed.
Common mistakes
- Do not combine multiple entities on one Schedule E-2. The form requires a separate schedule for each entity.
- Select only one entity type: S corporation or partnership.
- Enter the passive loss on line 1, non-passive loss on line 3, and Section 179 expense deduction on line 4 as positive amounts.
- Enter losses on lines 8 and 11 as negative amounts.
- Include interest and dividends on lines 9 and 10 only if those amounts were included in line 8.
Questions people ask
Can I report more than one entity on the same Schedule E-2?
No. File a separate Schedule E-2 for each partnership or S corporation.
Where do I find the PTE Excise Credit amount?
Use the Massachusetts K-1 issued by the entity to enter the amount of the 90% refundable PTE Excise Credit claimed. The form refers you to the Schedule E instructions.
How do I calculate the total on line 11?
Subtract the total of lines 9 and 10 from line 8. Enter a loss as a negative amount.
When should I fill in line 12?
Fill it in if you are reporting a loss not allowed in a prior year because of at-risk or basis limitations, a prior-year unallowed passive activity loss that was not reported on U.S. Form 8582, or unreimbursed partnership expenses.
When should I fill in line 13?
Fill it in if any amount of the investment is not at risk.