KPC: Partner's Share of Income, Credits and Modifications (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule KPC reports a partner’s share of partnership income, credits and modifications for 2025. It also reports Minnesota backup withholding and apportionment information.
Who files this form
Partnerships must complete and provide a 2025 Schedule KPC 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 M3, M4, or M8.
What you'll need
- Partner and partnership information: Names, mailing addresses, federal ID numbers, the partnership’s Minnesota ID, tax-year beginning and ending dates, partner entity type, and the partner’s distributive share percentage.
- Income and credit information: The partner’s share of the income, credits, modifications, withholding, and apportionment information requested on the schedule.
- Federal schedules for the partnership’s filing: Copies of federal Schedules K and K-1 must accompany Schedule KPC with Form M3.
- Credit identifiers, when applicable: Have the certificate numbers requested for the credits you report, including the Film Production Tax Credit certificate number and the National Park Service project number for the historic structure rehabilitation credit.
- For partners preparing a return: Use the completed Schedule KPC provided by the partnership.
How to file
- Partnership preparing Schedule KPC: Complete the schedule and provide it to each corporate or partnership partner. Round amounts to the nearest dollar.
- Partnership filing Form M3: Include Schedule KPC and copies of federal Schedules K and K-1.
- Partner filing a Minnesota return: Use the schedule’s information to complete Form M3, M4, or M8, and include Schedule KPC with that return.
If you receive an amended Schedule KPC and your income or deductions have changed, 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.
Common mistakes
- Leaving Schedule KPC out of your return: The department will disallow credits and assess tax or reduce your refund if the schedule is missing.
- Omitting the schedule because a credit is passed through: The instructions specifically require S corporations and partnerships to enclose a copy even when passing through the Employer Transit Pass Credit, Enterprise Zone Credit, or Minnesota backup withholding credit.
- Ignoring an amended KPC: If the amended schedule changes your income or deductions, you must file an amended Minnesota return.
- Not rounding amounts: The form reminds you to round amounts to the nearest dollar.
Questions people ask
Should an individual partner receive Schedule KPC?
No. The partnership must use Schedule KPI for individual, estate, and trust partners. Schedule KPC is for corporate and partnership partners.
Do I need to include Schedule KPC with my Minnesota return?
Yes. Partners must include it when filing Form M3, M4, or M8. If it is missing, the department will disallow credits and assess tax or reduce your refund.
What if I receive an amended Schedule KPC?
If your income or deductions have changed, you must file an amended Minnesota return using Form M4X, M8X, or M3X, depending on your entity type.
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.