Schedule K-1 (Form 1065), Part III
What each box on a Schedule K-1 means, and where it goes
Twenty short pages, one per box: what the box reports, where it usually lands on Form 1040, the common codes, and a real example line as K1 FastTax reads it.
How to use this guide
Part III in one minute
Part III of a Form 1065 Schedule K-1 is Partner's Share of Current Year Income, Deductions, Credits, and Other Items. Boxes 1 to 10 are single amounts: business income, rental income, interest, dividends and gains. Boxes 11 and 13 to 20 are coded: each line is a code letter followed by an amount, and one box can have several lines.
Each box page gives the common case for where the number goes and says "see instructions" where it depends on your situation, because limits on basis, at-risk amounts and passive activities can change what reaches your return. None of it is tax advice.
The official text is the Partner’s Instructions for Schedule K-1 (Form 1065). This guide is a plain-language reading aid, not a replacement for it.
All 20 boxes
- 1Ordinary business income (loss)Schedule E, Part II
- 2Net rental real estate income (loss)Schedule E, Part II
- 3Other net rental income (loss)Schedule E, Part II
- 4Guaranteed paymentsSchedule E, Part II
- 5Interest incomeForm 1040, line 2b
- 6Dividends and dividend equivalentsForm 1040, lines 3a and 3b
- 7RoyaltiesSchedule E, line 4
- 8Net short-term capital gain (loss)Schedule D, line 5
- 9Long-term capital gain and rate-group itemsSchedule D, line 12
- 10Net section 1231 gain (loss)Form 4797
- 11Other income (loss)Depends on the code
- 12Section 179 deductionForm 4562, Part I
- 13Other deductionsDepends on the code
- 14Self-employment earnings (loss)Schedule SE
- 15CreditsDepends on the code
- 16Schedule K-3 is attached if checkedFlag only
- 17Alternative minimum tax (AMT) itemsForm 6251
- 18Tax-exempt income and nondeductible expensesForm 1040, line 2a (code A)
- 19DistributionsBasis records
- 20Other informationDepends on the code
Boxes 21 to 23
K1 FastTax exports boxes 1 to 20. The form has three more, which are flagged for you when they hold a value:
- Box 21: Foreign taxes paid or accrued
- Box 22: More than one activity for at-risk purposes
- Box 23: More than one activity for passive activity purposes
Using Form 1120-S or Form 1041 K-1s instead? The layouts differ. See 1065 vs 1120-S K-1.
Plain answers
Reading a K-1: common questions
Why are so many boxes on my K-1 blank?
A box is blank when the partnership has nothing to report in it for you. Most K-1s have only a handful of boxes filled in. K1 FastTax records a blank box as an empty cell, not a zero, and lists the blank boxes in the checklist so you know there is nothing to enter.
What do the letters in boxes 11 and 13 to 20 mean?
They are codes that say what kind of item the amount next to them is. Each code has a title in the IRS Partner's Instructions, and the list changes from year to year, so use the instructions for the tax year printed on your K-1. The box pages here show the 2025 codes.
What does STMT or an asterisk mean next to a code?
It means the amount is not in the box. It is on a statement attached to the K-1. K1 FastTax records STMT in the CSV and adds the line to the review list, so you remember to read the statement.
Do numbers in parentheses mean a loss?
Yes. A number in parentheses is negative. K1 FastTax stores it with a leading minus sign. If a scan loses the closing parenthesis, the sign becomes ambiguous and the value is held for you to confirm instead of being guessed.
Is this guide tax advice?
No. It describes what each box reports and where it commonly goes. Limits and special rules can change what reaches your return. For your own situation use the Partner's Instructions for Schedule K-1 (Form 1065) or a tax professional.
Does K1 FastTax read boxes 21 to 23?
Not as columns. Box 21 (foreign taxes paid or accrued) and boxes 22 and 23 (more than one activity for at-risk or passive activity purposes) are outside the exported range of boxes 1 to 20. If a value shows up there it is flagged for you.
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