KPC: Partner's Share of Income, Credits and Modifications (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule KPC reports a partner’s share of partnership income, credits, modifications, Minnesota backup withholding, and apportionment information for 2024. Partnerships complete and provide it to each corporate or partnership partner.
Who files this form
Partnerships must complete 2024 Schedule KPC and provide it to each corporate or partnership partner. For individual, estate and trust partners, use Schedule KPI instead.
Corporate and partnership partners use Schedule KPC to report their share of the partnership’s income, credits and modifications. They must include it with their Minnesota Form M4, Form M8 or Form M3.
What you'll need
- For the partnership’s filing: Include Schedule KPC and copies of federal Schedules K and K-1 with Form M3.
- For the partner’s filing: Include the completed Schedule KPC received from the partnership with Form M3, M4 or M8.
- To complete Schedule KPC: Have the partner’s and partnership’s names, mailing addresses and federal ID numbers, the partnership’s Minnesota ID, the tax-year beginning and ending dates, the partner’s entity type and distributive-share percentage, and the amounts being reported.
- For applicable credits: The form asks for certificate numbers for the State Housing Tax Credit, Film Production Tax Credit, Tax Credit for Owners of Agricultural Assets and Credit for Sustainable Aviation Fuel. It also asks for the National Park Service number for the historic structure rehabilitation credit.
How to file
Partnerships: Complete Schedule KPC and provide it to each corporate or partnership partner. Include the schedule and copies of federal Schedules K and K-1 with your Form M3.
Partners: Use the completed schedule to report your share of income, credits and modifications. Include Schedule KPC when filing Form M3, M4 or M8.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving Schedule KPC out of the return. The text warns that the department will disallow credits and assess tax or reduce your refund if the schedule is not included.
- Omitting the schedule when passing through certain credits. For the Employer Transit Pass Credit, Enterprise Zone Credit and Minnesota backup withholding, S corporations and partnerships must enclose a copy even when passing the credit through to shareholders or partners.
- Not rounding amounts. The form says to round amounts to the nearest dollar.
- Using KPC for individual, estate or trust partners. The form directs partnerships to use Schedule KPI for those partners instead.
Questions people ask
What is Schedule KPC used for?
It shows a corporate or partnership partner’s specific share of the partnership’s income, credits and modifications. Partners use it to complete their Minnesota return.
What if I receive an amended Schedule KPC?
If your income or deductions have changed, you must file an amended Minnesota return. Use Form M4X for a corporate partner, Form M8X for an S corporation partner or Form M3X for a partnership partner.
What should I do if lines 10a or 10b show a positive amount?
S corporations must check the “Installment Sale of Pass-through Assets or Interests” box on Form M8, page 1, and report the full amounts proportionately to shareholders on Schedules KS. Partnerships must check that box on Form M3, page 1, and report the full amounts to the partners to whom they are allocated on Schedules KPC or KPI. C corporations should disregard this information.
What is line 36 used for?
Line 36 reports Minnesota source gross income. It helps tiered partnerships determine that income and is used to determine whether an eventual nonresident partner has a Minnesota filing requirement.