This guide is for individuals who received a K-1 from a partnership and need to enter it into TurboTax.

📝 What You’ll Need:

- Your Schedule K-1 (Form 1065)
- Any attachments or footnotes
- Optional: Schedule K-3, if the partnership has foreign income or deductions

💻 Step-by-Step in TurboTax

Step 1: Go to the Right Place

Open your TurboTax return
Go to: Federal tab → Wages & Income
Scroll to: S-corps, Partnerships, and Trusts
Click “Start” or “Revisit” next to Schedule K-1
Select Partnership (Form 1065) when asked

💡 Pro Tip – Real User FAQ:

“What if I don’t see Schedule K-1 in TurboTax?”
Make sure you’ve selected TurboTax Premier or higher. K-1 entry isn’t available in the Free or Deluxe versions.

Step 2: Enter General Info About the Partnership

TurboTax will ask for:
- Partnership name & EIN
- Your ownership % (from Box J)
- Whether you materially participated in the business

💡 Jargon Buster:

Material participation means you worked in or helped manage the business. If yes, TurboTax will treat the income as nonpassive — which can let you deduct more losses or take certain credits.

💡 Pro Tip – Real User FAQ:

“Why does it matter if I was passive or not?”
Because passive losses are limited — you may not be able to deduct all your losses unless you were actively involved.

Step 3: Enter the K-1 Box by Box

TurboTax will walk you through each box. Here's what they usually mean and what to do:

Box

What It Means

Do This in TurboTax

Box 1

Ordinary Business Income

Enter this as your share of the partnership’s profit.

Box 2

Rental Real Estate Income

Enter this on a separate K-1 entry — TurboTax will treat rental income differently.

Box 4

Guaranteed Payments

Enter as ordinary income. These are payments made to you even if the partnership had no profits.

Box 13

Deductions (charity, 179, etc.)

Enter each coded item in 'Other Deductions.' Use the letter code and your attachments.

Box 16

Foreign Transactions

Check 'yes' and follow prompts if anything is entered in Box 16.

Box 19

Distributions

Not taxable unless they exceed your basis — but must still be entered.

Box 20

Other Items (like QBI, at-risk, PAL)

Codes like Z (QBI), AH (At-risk), AI (Passive loss). Check footnotes and enter each one.

💡 Pro Tip – Real User FAQ:

“What’s Box 20 Code Z?”
That’s for Section 199A, or the Qualified Business Income deduction. You’ll need to enter any W-2 wages or UBIA provided in your footnotes from your STMT for TurboTax to calculate it correctly.

Step 4: K-3 / Foreign Tax Info (If Applicable)

If your K-1 includes Box 16 entries or you received a Schedule K-3, TurboTax will ask: “Did this K-1 include foreign transactions?” Answer Yes and follow prompts to enter country, type of income, and any taxes paid.

💡 Pro Tip – Real User FAQ:

“What if I didn’t get a K-3 but Box 16 is filled in?”
Some partnerships only send the K-3 if requested. Reach out to them if needed.

Step 5: Final Review & Forms Check

TurboTax will fill out these forms:
- Schedule E (income)
- Form 8995 or 8995-A (QBI)
- Form 1116 (foreign tax)
- Form 8582 (passive loss tracking, if needed)

💡 Pro Tip – Real User FAQ:

“What is Form 8582?”
It keeps track of your passive activity losses and how much can be used this year versus carried forward to future years.

✅ You Did It!

You’ve successfully entered a K-1 from a partnership and now understand what each section means — in plain, confident English.

Partnership K-1 (Form 1065) TurboTax Guide: Flow to Form 1040

This guide shows where each common K-1 (Form 1065) box entry in TurboTax flows on the individual Form 1040, including supporting schedules.

K-1 Box

Description

TurboTax Entry Destination

Flows to 1040/Schedules

Box 1

Ordinary Business Income

Schedule K-1 Income screen

Schedule E Part II, Line 28 → 1040, Line 5

Box 2

Net Rental Real Estate Income

Rental Income (Schedule E) screen

Schedule E Part I, Line 21 → 1040, Line 5

Box 4

Guaranteed Payments

Guaranteed Payments screen

Schedule 1, Line 5 → 1040, Line 8

Box 5

Interest Income

Interest Income screen

Schedule B, Part I, Line 1 → 1040, Line 2b

Box 6a

Ordinary Dividends

Dividends screen

Schedule B, Part II, Line 5 → 1040, Line 3b

Box 7

Royalties

Royalties screen

Schedule E Part I, Line 4 → 1040, Line 5

Box 8

Net Capital Gain

Capital Gains screen

Schedule D → 1040, Line 7

Box 9

Collectibles/Section 1250 Gain

Capital Gains screen

Schedule D → 1040, Line 7

Box 14

Self-Employment Earnings

Self-Employment screen

Schedule SE → 1040, Line 4

Box 16

Foreign Transactions

Foreign Tax Credit screen

Form 1116 → 1040, Line 13

Box 17

AMT Items

AMT Items screen

Form 6251 → 1040, Line 11b

Box 18

Tax-Exempt Interest

Tax-Exempt Interest screen

1040, Line 2a

Box 19

Distributions

Distributions screen

Not on 1040 (basis tracking only)

Box 20

Other Info (e.g., QBI)

Section 199A screen

Form 8995/8995-A → 1040, Line 10