NC K-1 (D-403): Partner's Share of North Carolina Income, Adjustments, and Credits (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
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 2025. It also includes sections 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 is required to pay tax at the entity level.
Partners should keep the form for their records. They do not need to attach it to their North Carolina tax return unless specifically required.
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.
- Whether the partner was a North Carolina resident 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.
- Federal Form 1065, Schedule K-1 amounts from lines 1 through 11 for the income or loss calculation.
- Applicable amounts from Form D-403, Part 4, for adjustments, credits, net tax paid, and income or loss attributable to North Carolina.
Partners should keep Form D-403 NC K-1, the NC K-1 Supplemental Schedule, and any other information the partnership provides.
Common mistakes
- Using red ink: Use blue or black ink for handwritten forms.
- Adding punctuation to entries: Do not use dollar signs, commas, or other punctuation marks.
- Using incorrect print settings: Set page scaling to “none,” uncheck Auto-Rotate and Center, and do not print on both sides of the paper.
- Sending photocopies: Submit originals only.
- Mixing form types: The printed guidelines say not to mix form types.
- Including the handwritten-form instruction page: That page says not to include it.
- Attaching partner information unnecessarily: Partners are not required to attach this information to their North Carolina return unless specifically required.
Questions people ask
Do I need to attach my NC K-1 to my North Carolina tax return?
No, unless specifically required. Keep it, the NC K-1 Supplemental Schedule, and any other information from the partnership for your records.
How is the income or loss on 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.
Which part is for nonresident partners?
Part B is for nonresident partners. Partnerships must complete it for each nonresident partner, in addition to Part A.
Where does a nonresident individual report the net tax paid by the partnership?
The form directs individuals filing Form D-400 to enter the amount from NC K-1 line 9 on Form D-400, line 21c.
When must a partnership complete Part C?
A Taxed Partnership must complete Part C for each partner for whom it is required to pay tax at the entity level.