NC K-1 (D-403): Partner's Share of North Carolina Income, Adjustments, and Credits (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-403 NC K-1 reports each partner’s share of a partnership’s income or loss, North Carolina adjustments, and tax credits for 2024. It also includes information for nonresident partners and partners for whom a Taxed Partnership is required to pay tax at the entity level.
Who files this form
Partnerships use Form D-403 NC K-1 to report each partner’s share of income or loss, North Carolina adjustments, and tax credits.
- Part A: All partnerships complete this part for each partner.
- Part B: All partnerships complete this part for each nonresident partner.
- Part C: Taxed Partnerships complete this part for each partner for whom the partnership must pay tax at the entity level.
What you'll need
The form calls for:
- The partnership’s name, address, ZIP code, and federal employer identification number.
- The partner’s name, address, ZIP code, and identifying number.
- The partner’s North Carolina residency status on the last day of the partnership’s taxable year.
- Whether the partnership is a Taxed Partnership.
- The disregarded entity’s name and taxpayer identification number, if the partner is its beneficial owner.
Line 1 uses lines 1 through 11 of federal Form 1065, Schedule K-1. Several other lines use amounts from Form D-403, Part 4.
Partners should keep Form D-403 NC K-1, Form NC K-1 Supplemental Schedule, and any other information the partnership provides for their records.
Common mistakes
- Attaching information unnecessarily: Partners do not need to attach the NC K-1 information to their North Carolina tax return unless specifically required to do so.
- Not keeping records: Keep the NC K-1, the NC K-1 Supplemental Schedule, and any other information provided by the partnership.
- Overlooking income already reported: The form notes that the income or loss on line 1 should already be included in federal adjusted gross income.
Questions people ask
What does Form D-403 NC K-1 report?
It reports each partner’s share of the partnership’s income or loss, North Carolina adjustments, and North Carolina tax credits.
Which date determines the residency answer on this form?
The form asks whether the partner was a North Carolina resident on the last day of the partnership’s taxable year.
How is line 1 calculated?
Add lines 1 through 11 of federal Form 1065, Schedule K-1. The form notes that this amount should already be included in federal adjusted gross income.
Where does an individual report the net tax paid by the partnership?
For individuals filing Form D-400, the form directs the amount on NC K-1 line 9 to Form D-400, line 21c.