Updated September 30, 2026. Quick answer: A Schedule K-1 (Form 1065) tells a partner their share of the partnership’s income, deductions and credits. The partner’s instructions are organised by box: box 1 is ordinary business income, box 14 is self-employment earnings and box 19 is distributions. The table lists every box with the IRS heading. A K-1 from an estate or trust is a different form (1041).
Every box on the Form 1065 K-1
The form itself is titled “Partner’s Share of Income, Deductions, Credits, etc.” These are the box headings in the IRS Partner’s Instructions for Schedule K-1 (Form 1065), 2025 edition.
| Box | IRS heading |
|---|---|
| Box 1 | Ordinary Business Income (Loss) |
| Box 2 | Net Rental Real Estate Income (Loss) |
| Box 3 | Other Net Rental Income (Loss) |
| Box 4a | Guaranteed Payments for Services |
| Box 4b | Guaranteed Payments for Capital |
| Box 4c | Total Guaranteed Payments |
| Box 5 | Interest Income |
| Box 6a | Ordinary Dividends |
| Box 6b | Qualified Dividends |
| Box 6c | Dividend Equivalents |
| Box 7 | Royalties |
| Box 8 | Net Short-Term Capital Gain (Loss) |
| Box 9a | Net Long-Term Capital Gain (Loss) |
| Box 9b | Collectibles (28%) Gain (Loss) |
| Box 9c | Unrecaptured Section 1250 Gain |
| Box 10 | Net Section 1231 Gain (Loss) |
| Box 11 | Other Income (Loss) |
| Box 12 | Section 179 Deduction |
| Box 13 | Other Deductions |
| Box 14 | Self-Employment Earnings (Loss) |
| Box 15 | Credits |
| Box 16 | International Transactions |
| Box 17 | Alternative Minimum Tax (AMT) Items |
| Box 18 | Tax-Exempt Income and Nondeductible Expenses |
| Box 19 | Distributions |
| Box 20 | Other Information |
| Box 21 | Foreign Taxes Paid or Accrued |
| Box 22 | More Than One Activity for At-Risk Purposes |
| Box 23 | More Than One Activity for Passive Activity Purposes |
Box 1: ordinary business income
The IRS describes it this way: “The amount reported in box 1 is your share of the ordinary income (loss) from trade or business activities of the partnership.” Where it goes depends on whether you materially participated: “Report box 1 income (loss) from partnership trade or business activities in which you materially participated in column (i) or (k) of Schedule E (Form 1040), line 28.”
Box 14: self-employment earnings
A partner can owe self-employment tax on this amount. For spouses who are both partners: “If you and your spouse are both partners, each of you must complete and file your own Schedule SE (Form 1040), Self-Employment Tax, to report your partnership net earnings (loss) from self-employment.” See self-employment tax explained.
Box 19: distributions are not income
A cash distribution reported in box 19 is generally not taxed as income by itself. The IRS describes code A: “In general, code A is used to report the distributions the partnership made to you of money, that is, cash and certain marketable securities.” Tax arises when the money received is more than your basis: “To the extent the cash and the FMV of the securities (reduced by the reduction amount) received exceed the adjusted basis of your partnership interest immediately before the distribution, the excess is treated as gain from the sale or exchange of your partnership interest.”
Boxes 22 and 23: more than one activity
Two boxes only flag that a statement is attached: “When the partnership has more than one activity for at-risk purposes, it’ll check this box and attach a statement.” Box 23 does the same for passive activity purposes.
Estates and trusts use a different K-1
A K-1 from an estate or trust is issued under Form 1041, with its own box numbers. See the Schedule K-1 (Form 1041) boxes page. The QBI deduction a pass-through owner may claim is covered at the QBI deduction thresholds page.
Edition and scope
The instructions read are the 2025 Partner’s Instructions for Schedule K-1 (Form 1065). This page is the hub: it lists every box and decodes the three that most often raise questions. A box-by-box page for each is not published yet.
Common mistakes
- Reading a box 19 distribution as taxable income. It reduces basis first.
- Using the Form 1041 K-1 instructions for a partnership K-1. The box numbers differ.
- Ignoring box 14 because the K-1 shows no tax. Self-employment tax is figured on Schedule SE.
Related: the Form 1041 K-1 boxes, self-employment tax, and QBI deduction thresholds.
Sources
- IRS Partner’s Instructions for Schedule K-1 (Form 1065) (2025): https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf
- IRS Schedule K-1 (Form 1065) 2025, Partner’s Share of Income, Deductions, Credits, etc.: https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
Read from the IRS documents linked above on September 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.