KPI: Partner's Share of Income, Credits and Modifications (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule KPI reports an individual, estate or trust partner’s share of partnership income, credits and Minnesota income adjustments for 2025. It also reports Minnesota withholding and, for certain partners, the Minnesota portion of amounts from federal Schedule K-1.
Who files this form
The partnership must complete and provide Schedule KPI 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. For corporate and partnership partners, use Schedule KPC instead.
Individual partners use Schedule KPI to complete Form M1. Estate and trust partners use it to complete Form M2. Partners must include Schedule KPI with those returns when they file.
Nonresidents do not need to file Form M1 or M2 if their only Minnesota source income is from entities making a PTE tax election or entities in which they elected composite income tax.
What you'll need
Have the following information and documents available, as applicable:
- Partner name, address, federal ID number or Social Security number, entity type and distributive share percentage.
- Partnership name, address, federal ID number and Minnesota ID number.
- Federal Schedules K and K-1, which the partnership must include with Schedule KPI and Form M3.
- Schedule KPINC for the federal-change adjustments referenced on lines 6 and 19.
- Schedule M3A for the Minnesota apportionment factor on line 52.
- Credit certificate numbers for the credits on lines 23, 24, 27, 28 and 29, and the National Park Service project number for line 30.
Partners need the completed Schedule KPI to report their share of income, credits and modifications on Form M1 or Form M2 and the applicable supporting schedules.
How to file
- Partnership: Provide Schedule KPI to the required partners. Include it and copies of federal Schedules K and K-1 with Form M3.
- Individual partner: Report the amounts on the appropriate Minnesota return lines and include Schedule KPI with Form M1.
- Estate or trust partner: Report the amounts on the appropriate Minnesota return lines and include Schedule KPI with Form M2.
The supplied text does not provide 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 Schedule KPI. If it changes your income or deductions, you must amend your Minnesota return using Form M1X or Form M2X.
- Failing to round amounts. The form directs you to round to the nearest whole dollar.
- Reporting amounts excluded from federal income. For lines 39 through 52, if federal loss limits, section 179 limits or other rules exclude 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 the partnership income, credit and modification information they need to complete Minnesota Form M1 or Form M2.
Does Minnesota tax all of my partnership income?
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 from the partnership.
Do I need to file Form M1 if I elected composite income tax?
The line 54 instructions state that individuals who elected composite income tax are not required to file Form M1.
Can I get a refund if my Minnesota income is below the filing threshold?
If your 2025 Minnesota source gross income is less than $14,950 and you had Minnesota tax withheld, as shown on line 34 or line 55, the instructions say to file Form M1 to receive a refund.