Schedule K1 Partner Share Income Deductions Credits, Form 8865 (2023)

Schedule K-1 (Form 8865) summarizes your individual share of income, deductions, and credits from a foreign partnership you hold an interest in. It's crucial for reporting these items accurately on your US tax return.

What is Schedule K-1 (Form 8865)?

Schedule K-1 is an integral part of Form 8865, filed by US persons with interests in foreign partnerships. It details your partner's share of various tax items, including:

  • Income: Ordinary income, capital gains, foreign earned income, etc.
  • Deductions: Business expenses, depreciation, depletion, etc.
  • Credits: Foreign tax credits, investment credits, etc.

Who receives Schedule K-1 (Form 8865)?

Any US person who is a direct partner in a foreign partnership will receive Schedule K-1 from the partnership. This includes individuals, trusts, estates, and corporations.

Key things to know about Schedule K-1 (Form 8865):

Information reported:

  1. Schedule K: Provides an overview of the partnership's income, deductions, and credits.
  2. Schedule K-1: Details your individual share of these items based on your ownership percentage.
  3. Schedules K-2 and K-3: Introduced in 2021, these schedules focus specifically on international tax items for clearer reporting.

Purpose: The information on Schedule K-1 helps you accurately report your share of the partnership's tax items on your US tax return (e.g., Form 1040).

Filing deadline: The deadline to file Form 8865 and its schedules, including Schedule K-1, is generally the same as your individual tax return deadline (usually April 15th). However, extensions may be available.

For the current year's Form 8865, click here.