A Schedule K-1 is a tax document used to report the incomes, losses, dividend receipts, and capital gains of partners or of shareholders of s corporations or from some trusts. The Schedule K-1 document is prepared for each partner or shareholder showing the share of income, loss, dividends and other income or loss.
Entering Schedule K-1 information for a Shareholder in the tax program
From the Main Menu of the Tax Return (Form 1120-S) select:
- Schedule K – Distributive Share Items
- Schedule K-1 Input
- Select ‘New’, or select ‘Pull’ if you prepared the business return using the
Keystone Tax Solutions Pro software in the previous year and wish to pull the data forward.
Entering Schedule K-1 information for a Partner in the tax program
You must input a Schedule K-1 for each partner. The program will keep track of the partners that are entered on the Schedule K and print the total number of Schedule K-1(s) on Line I of Form 1065.
From the Main Menu of the Tax Return (Form 1065) select:
- Schedule K – Distributive Share Items
- Schedule K-1 Input
- Select ‘New’, or select ‘Pull’ if you prepared the business return using the
Keystone Tax Solutions Pro software in the previous year and wish to pull the data forward.
Entering Schedule K-1 information for a Beneficiary in the tax program
You must input a Schedule K-1 for each beneficiary. The program will keep track of the beneficiaries that are entered on the Schedule K and print the total number of beneficiaries on line B of Form 1041. To enable the Form 1041 program to allocate amounts to the Schedule K-1(s), complete the Schedule B, Income Allocation, to generate a percentage. Once the percentage is generated, amounts will carry over to the Schedule K-1(s).
From the Main Menu of the Tax Return (Form 1041) select:
- Schedule K-1
- Schedule K-1 Input
- Select ‘New’, or select ‘Pull’ if you prepared the business return using the
Keystone Tax Solutions Pro software in the previous year and wish to pull the data forward.
NOTE: This is a guide on entering statutory income into the Keystone Tax Solutions Pro program. This is not intended as tax advice.