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Enter K-1 Line Items from a Partnership on Your Form 1120S: Income Tax Return for S Corp

Updated: 3/30/2011
Article ID: GEN12130

If your S Corporation has received a K-1 from a Partnership, it can be a little tricky finding where to enter all of the information on your Form 1120S: Income Tax Return for S Corp. See the table below to learn where to enter the most common K-1 line items in TurboTax Business. If you have line items that are not addressed below, please contact us and reference article number 2082.

Follow these steps first for all of the below income categories and then proceed with the instructions for each specific income item:

  1. Enter required information in the General Info tab.
  2. When you come to "Your Income" screen, scroll down to Income Reported on Schedule K-1, K-1s Received, click Edit.
  3. Check off the type of K-1 received (Partnership or LLC Form 1065, S Corp Form 1120S, Estates or Trusts Form 1041).
  4. Proceed with the instructions below for each specific topic.

Partnership
K-1 Line

To enter in TurboTax
Form 1120S: Income Tax Return for S Corp
Line 1

Ordinary Business Income (Loss) and

Line 4
Guaranteed Payments
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab.
  2. Type "Form" in the Type a Form Window, Highlight Form 1120 p1-2: S Corporation Tax  Return and Click Add Form.
  3. Scroll to Line 5: Other income (loss) in the Income section.
  4. Enter the Partnership name(s) and federal ID number(s) on the first line.
  5. Enter amount(s) on the line to the right, and then select OK.
  6. Select the Back to Interview button at the bottom right of the screen.

Line 2
Net Rental Real Estate Income (Loss)
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab.
  2. Type "8825" in the Type a Form Window, Highlight 8825 Worksheet:Rental Real Estate Income and Expenses and Click Add Form.
  3. Click on the line to the right of Line 2 Gross Rents, and then click on the pad to open Supporting Details.
  4. Enter Partnership name(s) and amount(s), and then select OK.
  5. Select the Back to Interview button at the bottom right of the screen.
Line 3 Other Net Rental Income (Loss)
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab. 
  2. Type "Form" in the Type a Form Window, Highlight Form 1120S p1-2: S Corporation Tax Return and Click Add Form.
  3. Scroll to the Schedule K section near the bottom of the form.
  4. Enter K-1 information on Line 3a Other gross rental income/ loss in the Schedule K section.
    Note: Click on the line, and then click on the pad to open Supporting Details. Submit description(s) and amount(s). Select OK to exit. Form 1120S will display the sum of the values submitted on the Supporting Details form.
  5. If applicable, enter K-1 information on Line 3b Expenses from other rental activities.
  6. Select the Back to Interview link at the bottom right of the screen.

Line 5 Interest Income
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab.
  2. Type "Form" in the Type a Form Window, Highlight Form 1120S p1-2: S Corporation Tax Return and Click Add Form.
  3. Scroll to Line 4 in the Schedule K section near the bottom of the screen.
  4. Click the line closest to Banks, Certificates of Deposit, etc. and/or U.S. Obligations.
  5. Click on the pad displayed to open Supporting Details.
  6. Enter Partnership name(s) and amount(s).
  7. Select OK to exit Supporting Details.
  8. Select the Return to Interview link at the bottom right of the page.

Line 6a Ordinary Dividends,
Line 6b Qualified Dividends
and Line 7 Royalties
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab. 
  2. Type "Form" in the Type a Form Window, Highlight Form 1120S p1-2: S Corporation Tax Return and Click Add Form.
  3. Scroll to the Schedule K section near the bottom of the form.
  4. Click on Line 5a Ordinary Dividends, Line 5b Qualified Dividends, and/or Line 6 Royalties as appropriate.
  5. Click on the pad displayed to open Supporting Details.
  6. Enter Partnership name(s) and amount(s).
  7. Select OK to exit Supporting Details.
  8. Select the Return to Interview link at the bottom right of the page.

Line 8 Net Short-Term Capital Gain (Loss),
Line 9a Net Long-Term Capital Gain (Loss) and
Line 9b Collectibles (28%) Gain (Loss)
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab. 
  2. Type "sch" in the Type a Form Window, Highlight Schedule D: Capital Gains/Losses/Built-In Gains and Click Add Form.
  3. Scroll to the Capital Gains and Losses Smart Worksheet and then to the Capital Gains and Losses from Partnerships and Trusts section.
  4. Enter K-1 information.
    Note    : Click on the line in the Total or 28% Rate column, and then click on the pad to open Supporting Details. Submit description(s) and amount(s). Select OK to exit. The Smart Worksheet will display the sum of the values submitted on the Supporting Details form.
  5. Select the Back to Interview link at the bottom right of the page.

Line 9c Unrecaptured Section 1250 Gain
  1. Go to View (upper left), Click Forms, and then Click on the Add or View Form tab.
  2. Type "Form" in the Type a Form Window, Highlight Form 1120 p1-2: S Corporation Tax Return and Click Add Form.
  3. Submit K-1 information on Line 8c of the Schedule K section at the bottom of the page.
    Note: Click on the line, and then click on the pad to open Supporting Details. Submit description(s) and amount(s). Select OK to exit. Form 1120S will display the sum of the values submitted on the Supporting Details form.
  4. Select the Back to Interview link at the bottom right of the page.

Line 10 Net Section 1231 Gain (Loss)

 
  1. Go to View (upper left), Click Forms, and then Click on the Add or View Form tab.
  2. Type "Form" in the Type a Form Window, Highlight Form 4797 p1: Sales of Business Property and click Add Form.
  3. Scroll to the Sales of Business Property Smart Worksheet, and then to the Pass-through Entity Sec.1231 Gain/Loss section.
  4. Enter the Partnership name(s) and description(s) in the Pass-through Entity column.
  5. Click on the associated line in the Sec.1231 Gain or Loss or Unrecaptured Sec. 1250 Gain column, and then click on the pad to open Supporting Details.
  6. Submit amount(s) and then select OK to exit Supporting Details. Form 4797 will display the sum of the values submitted on the Supporting Details form.
  7. Select the Back to Interview link at the bottom right of the page.

Line 12 Section 179 Deduction
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab. 
  2. Type "Form" in the Type a Form Window, Highlight Form 1120 S p3-4: S Corporation Tax Return and click Add Form.
  3. Scroll to Line 11 Section 179 expense deduction in the Deductions section.
  4. Click the line on the far right of the form, and then click on the pad to open Supporting Details.
  5. Submit description(s) and amount(s). Select OK to exit. Form 1120S will display the sum of the values submitted on the Supporting Details form.
  6. Select the Back to Interview link at the bottom right of the page.

Line 17 Alternative
Minimum Tax (AMT) Items
  1. Go to View (upper left), Click Forms, Click on the Add or View Form tab. 
  2. Type "Form" in the Type a Form Window, Highlight Form 1120 p 3-4: S Corporation Tax Return and click Add Form.
  3. Scroll to Line 15f in the Alternative Minimum Tax (AMT) Items section.
  4. Enter Partnership name(s), type and description of AMT adjustment(s), and amount(s). (Post-1986 depreciation is an example of an AMT adjustment.)
    Note: Click on a line in the amount column, and then click on the pad to open Supporting Details. Submit description(s) and amount(s). Select OK to exit. Form 1120S will display the sum of the values submitted on the Supporting Details form.
  5. Select the Back to Interview link at the bottom right of the page.
 

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