Schedule K-1 (Form 1065), box 5
Box 5: Interest income
Your share of the partnership's taxable interest, reported like interest from a bank or broker.
What box 5 reports
Your share of the taxable interest the partnership earned, for example from bank accounts or notes it holds.
Tax-exempt interest is not here. It appears in box 18, code A.
Where it goes on your return
Form 1040, line 2b
The common case
Reported on Form 1040 or 1040-SR, line 2b, taxable interest. When your total taxable interest and ordinary dividends are above the Schedule B threshold, Schedule B, Part I also lists the partnership as a payer.
When it depends on you
A statement may split box 5 into types of interest. Interest that is not taxable is in box 18, not here. See the Partner's Instructions.
A real example line
Below, a line 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 |
|---|---|---|---|
5 Interest income 215 | 5 | 215 | Read |
Check before you enter it
- Funds that hold many positions can show small interest amounts in several K-1s. The CSV makes it easy to add them across K-1s.
In the K1 FastTax output
CSV column: box_5. In the checklist a line looks like Schedule K-1 (1065) screen, box 5. 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 5
Where does box 5 of a Form 1065 K-1 go on my return?
In the common case box 5 is reported as taxable interest on Form 1040 or 1040-SR, line 2b. When your total taxable interest and ordinary dividends are above the Schedule B threshold, Schedule B, Part I also lists the partnership as a payer. See the Partner's Instructions for special cases.
Is tax-exempt interest included in box 5?
No. Box 5 is taxable interest only. Tax-exempt interest appears in box 18, code A, and is reported on Form 1040 or 1040-SR, line 2a.
Do I add box 5 from all my K-1s together?
Taxable interest from all your sources goes on the same line of your return, so interest from several K-1s is totalled with the rest. Your tax software may ask for each payer separately. The box_5 column in the CSV makes it easy to add the amounts across K-1s.
What if the partnership's statement splits box 5 into types of interest?
A statement may break box 5 down by type of interest. Follow the statement and the Partner's Instructions if your software asks which type each amount is. K1 FastTax reads the box 5 amount printed on the K-1 and does not read attached statements.
Does box 5 affect self-employment tax?
Interest income is generally not self-employment income. The partnership reports self-employment earnings in box 14, code A.
Box 5 shows a code or STMT instead of a number. What do I enter?
Box 5 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 column holds box 5?
Box 5 is in the box_5 column as a plain number, for example 215. A blank box 5 is an empty cell, not a zero.
Is box 5 the same on a Form 1120-S or Form 1041 K-1?
Interest income is box 4 on a Form 1120-S K-1 and box 1 on a Form 1041 K-1. Box numbers differ between forms, so match the label, not just the number.
Related boxes
Read box 5 from your own K-1
Free: 1 file per day, up to 10 pages, no account. Nothing is filed and nothing is entered into tax software for you.