Entering Schedule K-1 information on an individual return in Lacerte

To begin entering Schedule K-1 Information:

1. Go to Screen 20, Passthrough K-1's.
2. Select Partnership Information, S Corporation Information, Estate or Trust Information or REMIC in the Passthrough K-1's box on the side of the screen.
3. Enter the applicable information in Part I.
4. Enter applicable information in Part II.
5. Select Part III in the Section box on the side of the screen.
6. In the Federal Amount column, enter the amounts as shown on the federal Schedule K-1 in the corresponding input fields.
7. For the resident state, if the state return amounts are different, enter the appropriate amounts in the State, if different column.
   • This input field refers to the Taxpayer's Resident State selected on screen 1. The State, if different column should be used to report differences in law between federal and state taxation.
   • Entries made here are sometimes reported separately on state tax forms (like the California Schedule CA) while some states just report an adjustment to federal Schedule E income on the main form or associated adjustment form.
   • See Sourcing income for a multi-state passthrough K-1 in Lacerte for more details.
8. If you have nonresident state amounts, enter the appropriate amounts in the State Source Amount column.
   1. Source each amount to the applicable state. 
   2. Enter amounts apportioned or allocated to the nonresident individual to be reported on their nonresident return as income from sources within that state.
   3. Entries in this field only impact nonresident returns and do not impact resident returns.
   4. See Sourcing income for a multi-state passthrough K-1 in Lacerte for more details.
9. Repeat steps 6 - 8 for each additional section in Screen 20, Passthrough K-1's.
   • Each section might have state-specific input fields identified by the state abbreviation enclosed with { }.
   • For example, New Jersey has Partnership income (loss) (NJ K-1, Part 2, line 1){NJ} in the partnership module under Part III. 
10. In the left Sections box, look for any applicable state-specific sections.
    • For example, Partner's Share of New York Modifications is a NY state-specific input section.
11. Some additional inputs may be needed under the Separately Stated Income and Deductions section.
    • If a passive activity, income can be entered as a positive amount or a deduction can be entered as a negative amount under First Passive Item, in the Other (Ctrl+E) field.
    • If a nonpassive activity, enter the information in the field Other nonpassive items (Ctrl+E).
    • Additional state-related inputs are in the State & Local Input Screens 50–57. 
12. These steps can be repeated for each federal and state Schedule K-1 received.

Related topics:

• Understanding partnership Schedule K-1, box 13 codes for individual returns
• Entering partnership K-1, Line 20 code AH on individual returns in Lacerte
• Entering partnership Schedule K-1, Box 19 in Lacerte