Schedule K-1 (Form 1065), box 4a, 4b, 4c
Box 4: Guaranteed payments
Payments the partnership owes you whatever its profit is: 4a for services, 4b for the use of capital, 4c is the total.
What box 4 reports
Payments from the partnership to you that do not depend on partnership income. Box 4a is for services you performed, box 4b is for the use of your capital, and box 4c is the total of the two.
K-1s for years before 2021 have a single box 4 labelled Guaranteed payments. K1 FastTax reads that as box 4 when the three split lines are absent.
On the form this is printed as boxes 4a, 4b, 4c.
Where it goes on your return
Schedule E, Part II
The common case
In the common case guaranteed payments are reported on Schedule E (Form 1040), Part II, line 28 as nonpassive income. Guaranteed payments for services are generally also self-employment earnings (see box 14, code A) and flow to Schedule SE.
When it depends on you
Payments for capital and payments for services are treated differently in some situations, such as for limited partners. See the Partner's Instructions.
A real example line
Below, lines written the way the document text arrives, run through the same reader as your upload. The reader matches the box number and the IRS label, then reads the amount, so it still finds the line when the scan is noisy.
| Line as the engine reads it | Box | Recorded value | Status |
|---|---|---|---|
4a Guaranteed payments for services 24,000 | 4a | 24,000 | Read |
4b Guaranteed payments for capital 6,000 | 4b | 6,000 | Read |
4c Total guaranteed payments 30,000 | 4c | 30,000 | Read |
Check before you enter it
- Enter 4a and 4b where your software has two lines. Box 4c is only their sum, so entering all three would double count.
- Guaranteed payments are separate from your share of profit in box 1.
In the K1 FastTax output
CSV column: box_4, box_4a, box_4b, box_4c. In the checklist a line looks like Schedule K-1 (1065) screen, box 4a. All CSV columns.
Official source
The IRS text for every box is in the Partner’s Instructions for Schedule K-1 (Form 1065). Use the edition for the tax year printed on your K-1, because box wording and code lists change.
Plain answers
Questions about box 4
What are boxes 4a, 4b and 4c on a Form 1065 K-1?
Guaranteed payments are payments the partnership owes you whatever its profit is. Box 4a is for services you performed, box 4b is for the use of your capital, and box 4c is the total of the two.
Do I enter 4a, 4b and 4c, or only some of them?
Enter 4a and 4b where your tax software has two lines. Box 4c is only their sum, so entering all three would count the same money twice.
Where do guaranteed payments go on my return?
In the common case they are reported on Schedule E (Form 1040), Part II, line 28 as nonpassive income. Guaranteed payments for services are generally also self-employment earnings (see box 14, code A) and flow to Schedule SE. See the Partner's Instructions for Schedule K-1 (Form 1065) for the year on your K-1.
Are guaranteed payments the same as distributions or my share of profit?
No. Guaranteed payments are separate from your share of profit in box 1 and from distributions in box 19. They are payments that do not depend on partnership income, and they generally count as income to you for the year, while distributions generally reduce your basis.
My older K-1 has only one box 4. Is that the same thing?
K-1s for years before 2021 have a single box 4 labelled Guaranteed payments. K1 FastTax reads it as box 4 when the three split lines are absent and writes it to the box_4 column. Newer K-1s use box_4a, box_4b and box_4c.
Are guaranteed payments treated differently for a limited partner?
Payments for capital and payments for services are treated differently in some situations, such as for limited partners. See the Partner's Instructions for Schedule K-1 (Form 1065) and ask your preparer if this applies to you.
Box 4 shows a code or STMT instead of a number. What do I enter?
Box 4 does not normally have codes. STMT or an asterisk means the amount is on a statement attached to the K-1, so read the statement for the figure. K1 FastTax does not guess: it leaves that CSV cell empty, names the box in needs_review and adds the line to the review list. A code letter printed next to an amount in a box that has no codes is held for review the same way, so check it against the paper K-1 and the Partner's Instructions for Schedule K-1 (Form 1065).
Which CSV columns hold box 4?
The columns are box_4a, box_4b and box_4c, plus box_4 for the single-line layout on K-1s from before 2021. Each is a plain number, and a blank line is an empty cell, not a zero.
Do Form 1120-S and Form 1041 K-1s have guaranteed payments?
No. Guaranteed payments exist on the partnership K-1 only. Neither the Form 1120-S K-1 nor the Form 1041 K-1 has a box for them.
Related boxes
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