KPI: Partner's Share of Income, Credits and Modifications (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule KPI reports an individual, estate, or trust partner’s share of partnership income, credits, and Minnesota tax adjustments. It also includes Minnesota-source income, withholding, and information related to alternative minimum tax.
Who files this form
The partnership completes Schedule KPI and provides it to:
- Each nonresident individual, estate or trust partner.
- Each Minnesota individual, estate or trust partner who has income adjustments or credits.
- All partners if the partnership elects pass-through entity (PTE) tax.
The form directs partnerships to use Schedule KPC instead for corporate and partnership partners.
Partners must include Schedule KPI when filing Form M1 for individuals or Form M2 for estates and trusts. Nonresidents do not need to file Form M1 or M2 if their only Minnesota-source income comes from entities making a PTE tax election or entities in which they elected composite income tax.
What you'll need
- Partner and partnership information: Names, mailing addresses, federal identification numbers or the partner’s Social Security number, the partnership’s Minnesota ID, partner entity type and distributive share percentage.
- Federal schedules: The partnership must include copies of federal Schedules K and K-1 with Schedule KPI and Form M3.
- Credit numbers, if applicable: Certificate numbers for the State Housing, Film Production, Agricultural Assets and Sustainable Aviation Fuel credits, and the National Park Service project number for the Historic Structure Rehabilitation credit.
- Partner return: Include the Schedule KPI received from the partnership with Form M1 or Form M2 when filing.
How to file
Partnerships: Complete Schedule KPI, provide it to the required partners, and include it with Form M3 along with copies of federal Schedules K and K-1.
Partners: Report the amounts on the return lines identified in Schedule KPI and its included line instructions. Attach Schedule KPI to Form M1 for individuals or Form M2 for estates and trusts.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving Schedule KPI out of your return: The department will disallow credits and assess tax or reduce your refund if you do not include the schedule as required.
- Ignoring an amended KPI: If an amended Schedule KPI changes your income or deductions, you must file an amended Minnesota return using Form M1X or Form M2X.
- Not rounding amounts: Round to the nearest whole dollar.
- Using the wrong lines for the partner type: Calculate lines 1–38 the same for resident and nonresident partners. Lines 39–55 are for estates, trusts and nonresident individuals only; lines 53–55 are specifically for nonresident individual partners.
- Reporting amounts excluded from federal income: For lines 39–52, if federal limitations exclude part of an item from federal income, include only the amount included in federal adjusted gross income.
Questions people ask
What is Schedule KPI used for?
It gives individual, estate and trust partners their share of the partnership’s income, credits and modifications needed to complete a Minnesota return.
Does Minnesota tax all of a resident individual partner’s partnership income?
Yes. A Minnesota resident individual is taxed on all distributive income from the partnership, even if the income is apportioned between Minnesota and other states. Estates, trusts and nonresident individuals are taxed on Minnesota distributive income.
Can I claim a refund if my Minnesota income is below the filing threshold?
If your 2024 Minnesota-source gross income is less than $14,575 and Minnesota tax was withheld, as shown on line 34 or 55, file Form M1 to receive a refund.
Where do I report nonresident withholding from line 55?
Individuals report line 55 on Schedule M1W, line 7, column C. Also report the amount from KPI line 53 on Schedule M1W, line 7, column B.