K-1 Income in Holistiplan

Wondering where to input your client's K-1 income? Read below to see where it can be entered in Scenario Analysis.

K-1 income is reported by not only businesses such as LLCs and S-Corps but also other entities such as trusts and estates to report various types of income. Due to the nature of various sources of K-1s, there are three types of K-1s that can be issued:

• K-1 (Form 1065) from a partnership return
• K-1 (Form 1120-S) from an S-Corp return
• K-1 (Form 1041) from an estate or trust return.

Though K-1 income is generally reported on Schedule E where rental income, royalties, partnership/S-Corp income, and estate/trust distributions are reported, to the extent that K-1 income is composed of interest income, dividend income, or capital gains, it could also be reported on Schedule B as taxable interest or dividends or the capital gains on Schedule D.

Schedule E

K-1 income can typically be entered in the "Schedule E" line item in Holistiplan's "Schedule 1 Income" section, by clicking the pencil icon circled below to access the Schedule E worksheet. 

 


Schedule B

If K-1 income is composed of interest, that income would be entered as tax-exempt or taxable interest, as appropriate, where outlined in blue below. Dividend income would be entered where outlined in green, and allocated appropriately between "Qualified Dividends" and "Total Dividends (inc. Qualified)."




Schedule D

Any K-1 income characterized as capital gains would be entered as either short-term or long-term capital gains, as appropriate, within the "Schedule D Income" section where outlined below.




It may be advisable to discuss with a CPA or a tax professional which section of the tax return is most appropriate to list your client's income. In some cases, income reported on a K-1 (such as in the case of some partnerships) can be subject to self employment taxes as well, as income flows to Line 2 of Schedule SE as seen below.