Updated October 18, 2026. Quick answer: Lines 19 to 21 finish the deduction list on page 1 of Form 1065: employee benefit programs, the energy efficient commercial building deduction, and a catch-all for other deductions with an attached statement. Line 22 adds the deductions, and line 23 subtracts that total from line 8 to give the partnership’s ordinary business income (loss). The amounts come from the partnership’s books and the attached forms and statements.
Line 19: employee benefit programs
The form caption is “Employee benefit programs”. The instructions say to “Enter the partnership’s contributions to employee benefit programs not claimed elsewhere on the return” and give the examples “(for example, insurance, health, and welfare programs)”. Pension and profit-sharing contributions are not entered here, because the programs on this line are “that aren’t part of a pension, profit-sharing, etc., plan included on line 18.” The earlier lines are on the lines 15 to 18 page.
One carve-out sits on this line: “Don’t include amounts paid during the tax year for insurance that constitutes medical care for a partner, a partner’s spouse, a partner’s dependents, or a partner’s children under age 27 who aren’t dependents.” The instructions then say to “include these amounts on line 10 as guaranteed payments” and to “Also report these amounts on Schedule K, line 13e”. The individual side of that insurance is covered at Schedule 1 line 17.
Line 20: energy efficient commercial building deduction
The caption is “Energy efficient commercial buildings deduction (attach Form 7205)”. The instructions describe it as “Deduction for certain energy efficient commercial building property.” They add “Complete and attach Form 7205 if claiming this deduction.” If the partnership has no such deduction, the line stays blank.
Line 21: other deductions
The caption is “Other deductions (attach statement)”. The instructions say to “Enter the total allowable trade or business deductions that aren’t deductible elsewhere on page 1 of Form 1065.” “Attach a statement listing by type and amount each deduction included on this line.”
The instructions list examples of other deductions, including “Amortization.” “Insurance premiums.” “Legal and professional fees.” “Supplies used and consumed in the business.” and “Utilities.” For amortization they say “Complete and attach Form 4562 if the partnership is claiming amortization of costs that began during the tax year.” More on that form is at Form 4562.
The instructions also list items not to deduct on line 21, starting with “Items that must be reported separately on Schedules K and K-1.” Another is “Net operating losses. Only individuals and corporations may claim a net operating loss deduction.” The instructions add “Lobbying expenses. Generally, lobbying expenses aren’t deductible.” Several of the listed items are to be reported on Schedule K, line 18c.
Lines 22 and 23: total deductions and ordinary business income
The instructions have no separate paragraph for line 22 or line 23, so the form’s own captions are the guide. Line 22 reads “Total deductions. Add the amounts shown in the far right column for lines 9 through 21”. Line 23 reads “Ordinary business income (loss). Subtract line 22 from line 8”.
As a computed illustration, not an IRS example, suppose line 22 is $62,000 and line 8 is $80,000. Subtracting line 22 from line 8 gives a computed $18,000 for line 23.
Where the number comes from
Line 19 comes from the partnership’s contribution records for benefit programs, apart from the retirement plan on line 18 and apart from partner medical insurance. Line 20 comes from Form 7205, and line 21 comes from the statement the partnership attaches, with Form 4562 behind any amortization. Lines 22 and 23 are arithmetic on the page. The income side is on the lines 4 to 8 page.
Where it goes next
Line 23 is the starting number for the rest of the return. On Schedule K the instructions say “Enter the amount from page 1, line 23.” They add that the income is entered “without reference to (a) the bases of the partners’ interests in the partnership, (b) the partners’ at-risk limitations, or (c) the passive activity limitations.” The next page, Schedule K lines 1 to 4, picks up from there, and the partner’s share is described at Schedule K-1 box 1. The tax and payment lines that follow on page 1 are on the lines 24 to 31 page. This page is part of the Form 1065 line-by-line walk-through.
Edition and line numbers
This page reads the 2025 Form 1065, U.S. Return of Partnership Income, and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form’s title line reads “U.S. Return of Partnership Income” and the period line reads “For calendar year 2025, or tax year beginning”. Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Putting partner medical insurance on line 19. The instructions say “Don’t include amounts paid during the tax year for insurance that constitutes medical care for a partner”
- Leaving the line 21 detail off the return. The instructions say “Attach a statement listing by type and amount each deduction included on this line.”
- Deducting a net operating loss on line 21. The instructions say “Only individuals and corporations may claim a net operating loss deduction.”
Related: Form 1065, Form 4562, Schedule 1 line 17, Schedule K-1 box 1, and Form 5500-EZ.
Sources
- Instructions for Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/i1065.pdf
- Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/f1065.pdf
Read from the IRS documents linked above on October 18, 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.