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How to import a K-1 in ProConnect Tax

by Intuit•13• Updated 4 months ago

This article will walk you through importing a Schedule K-1 to an individual (1040) return in ProConnect Tax.

For more Schedule K-1 resources, check out our Tax topics page for Schedule K-1 where you'll find answers to the most commonly asked questions.

Before you start

  • You can only import Schedule K-1s from business returns you prepared in ProConnect Tax.
  • Verify that the taxpayer and spouse tax identification number (SSN or ITIN) is entered correctly in the Client Information screen.
  • Make sure the taxpayer and spouse names within the individual return match what's on the K-1.

Follow these steps to import a K-1

  1. Open the individual (1040) return, and go to the Input Return tab.
  2. Click the Import Data button, then select K-1 Import.
    K1 import_PCG_US_ext_092221.png
  3. Select the business client whose K-1 you want to import.
  4. Select a Return to import from.
    Import K1_PCG_US_ext_092221.png
  5. Choose the partner, shareholder, or beneficiary whose K-1 you want to import.
  6. In the Select the K-1 where you want the data to go section, you can choose an existing K-1, or choose Add New K-1.
    • If you import to an existing K-1, your previous entries will be overwritten with the updated data.
  7. Press Review to continue.
  8. Review the data on the Ready To Be Imported screen.
  9. Select Diagnostics to view information about data that can't be imported, and entries that may need review. We recommend you print or screenshot these items for future reference.
    K1 diagnostic_PCG_US_EXT_092221.png
  10. Once you're satisfied with the data, click Import.

You'll be returned to the 1040 input screen where you imported data. Fields containing imported amounts will be highlighted in green.

Items that will import:

  • S-Corporation Name
  • S-Corporation EIN
  • Tax Shelter Registration Number
  • Ordinary Income
  • Rental Real Estate Income (loss)
  • Other Rental Income
  • Interest Income
  • US Bonds (Nontaxable to state)
  • Ordinary Dividends
  • Qualified Dividends
  • Royalties
  • Short-term Capital Gain (loss)
  • Collectibles 28% Gain (loss)
  • Long-term Capital Gain (loss)
  • Net 1231 Gain (loss)
  • Unrecaptured Section 1250 Gain
  • Passive Short-term Capital Gain (loss)
  • Passive Long-term Capital Gain (loss)- 28%
  • Passive Long-term Capital Gain (loss)
  • Section 1256 contracts and straddles
  • Section 179 Expense Deduction
  • Investment Interest Expense
  • Cash Contributions- 50% Limitation
  • Cash Contributions- 30% Limitation
  • Non-cash Contributions- 50% Limitation
  • Non-cash Contributions- 30% Limitation
  • Non-cash Contributions- 30% Capital Gain Property
  • Non-cash Contributions- 20% Capital Gain Property
  • Deductions - Royalty Deductions
  • Deductions - Portfolio Income (2% Floor)
  • Deductions - Portfolio Income (other)
  • Commercial Revitalization Deduction
  • Amount of Section 59(e)(2) expenditures
  • DPAD Domestic production gross receipts
  • DPAD Gross receipts from all sources
  • DPAD Cost of goods sold allocable to DPGR
  • DPAD Cost of goods sold from all sources
  • DPAD Deductions and loss directly alloc. to DPGR
  • DPAD Deductions and loss directly alloc to non-DPGR
  • DPAD Other deductions and loss not directly alloc
  • DPAD Form W-2 wages
  • DPAD Qualified production activities income
  • DPAD Employers W-2 wages
  • Self-Employed Health Insurance Premiums
  • Other Net Investment Income
  • Low-Income Housing Credit
  • Undistributed Capital Gain Credit
  • Credit for alcohol and cellulosic biofuel fuels
  • Work Opportunity Credit
  • Welfare-to-Work Credit
  • Disabled Access Credit
  • Empowerment Zone Employment Credit
  • Employer Social Security Credit
  • Orphan Drug Credit
  • Qualified Electric Vehicle Credit
  • Indian Employment Credit
  • Small Employer Pension Plan Startup Costs Credit
  • Employer-Provided Childcare Facilities Credit
  • Qualified zone academy bond credit
  • Hurricane Katrina Housing Credit
  • Alternative Motor Vehicle Credit
  • Contributions to Selected Community Development Corps credit
  • Biodiesel and Renewable Diesel Fuels Credit
  • Renewable Electricity Production Credit - Section A
  • Renewable Electricity Production Credit - Section B
  • Qualified Railroad Track Maintenance Credit
  • Distilled Spirits Credit
  • Energy Efficient Home Credit
  • Alternative Fuel Vehicle Refueling Property Credit
  • Low Sulfur Diesel Fuel Production Credit
  • Gross Farming Income
  • Post-1986 depreciation adjustment
  • Adjusted Gain or Loss
  • Depreciation on Real Property (pre-1987)
  • Depreciation on Leased Personal Property (pre-1987)
  • Depletion (Other than oil and gas)
  • Preference Items - Gross Income Oil and Gas
  • Preference Items - Gross Deductions Oil and Gas
  • Nondeductible expenses
  • Distributions
  • Loan repayments
  • Other current year increases to basis
  • Other current year decreases to basis
  • Loans made to the S Corp during the year
  • Adjustments to debt basis
  • Preference Items - Excess IDC

Note: Under certain conditions, some items listed above may not import. The most common reason for this is when an override has been entered on the shareholder's K-1.

Items that will not import

  • Line 10 - Other income (loss)
  • Box 12 - Other Section 59(e)(2) expenditures or Dry Hole costs
  • Line 12 - Other deductions
  • Line 13 - Qualified rental real estate rehabilitation expenditures
  • Line 13 - Other credits related to rental real estate activities
  • Line 13 - Credits related to other rental activities
  • Line 13 - Other credits
  • Line 14 - Gross income sourced at shareholder level
  • Line 14 - Foreign gross income sourced at corporate level - passive
  • Line 14 - Foreign gross income sourced at corporate level - listed categories
  • Line 14 - Foreign gross income sourced at corporate level - general limitation
  • Line 14 - Deductions allocated and apportioned at shareholder level - interest expense
  • Line 14 - Deductions allocated and apportioned at shareholder level - other
  • Line 14 - Deductions allocated and apportioned at corporate level - passive
  • Line 14 - Deductions allocated and apportioned at corporate level - listed categories
  • Line 14 - Deductions allocated and apportioned at corporate level - general limitation
  • Line 14 - Foreign tax paid
  • Box 14 - Foreign taxes accrued
  • Line 14 - Reduction in taxes available for credit
  • Box 14 - Foreign trading gross receipts
  • Box 14 - Extraterritorial income exclusion
  • Box 14 - Other foreign transactions
  • Line 15 - Other AMT items
  • Line 16 - Tax-exempt interest income
  • Line 16 - Other tax-exempt income
  • Line 17 - Other Information
  • Line 17 - Other Information from passthrough entity
  • Line 17 - Recapture of low-income housing credit - sec. 42(j)(5) partnerships
  • Line 17 - Recapture of low-income housing credit - other
  • Line 17 - Supplemental K-1 information for this shareholder
  • Line 17 - Supplemental K-1 information for all shareholders
  • Line 17 - Expenditures/basis qualifying for investment credit (Form 3468)

There are some situations where the data may not transfer. Check the following items to make sure everything is set up correctly, or to make necessary adjustments:

  • Make sure the Schedule K-1 has information to export. If there aren't any income or loss items the K-1 will not export.
  • Make sure the Social Security Number (SSN) of the partner(s), shareholder(s), or beneficiary(s) match the SSN for the taxpayer or spouse in the Individual module.
  • On the Partnership Information screen, make sure the Type of Entity is set to Individual.
    A yellow highlighting of the Type of Entity field, showing 1=Individual as being selected.
  • Check the dates of the return. If the return is on a fiscal year, the K-1 export won't work.
  • If you've reviewed all other information and the information still isn't appearing in the Individual module, check to see if the return has been split.
    • If it has, ProConnect Tax will export the K-1 information to the single/split return as opposed to the joint return. You may need to back up the MFS return and delete it in order to export the K-1 data to the MFJ return.
  • If Schedule K-1 activities already exist within the Passthrough K-1's section of the Individual module, or the SSN is correct and no import box appeared, enter the number of the specific K-1 into the entity's return as the activity number:
    • Partnership: Number of K-1 Activity in 1040 [O]
    • S- Corporation: Number of K-1 Activity in 1040 [O]
    • Fiduciary: Number of K-1 Activity in 1040 [O]
  • Grantor Trusts do not generate a K-1 and cannot be exported.

Examples

  • If the K-1 corresponded to the second partnership in the Passthrough K-1's section of the Individual return, enter a 2 in the Partnership return, Number of K-1 Activity in 1040 [O] for the specific partner.
  • If there are no other K-1s currently present in the Passthrough K-1's screen, enter a 1 in the Number of K-1 Activity in 1040 field in the appropriate business return.
  • If a taxpayer and spouse each have a K-1 from the same entity, enter consecutive numbers (e.g. 1 and 2, or 2 and 3 if there is another K-1 already present in the Passthrough K-1's section in the Number of K-1 Activity in 1040 field in the appropriate business return.

Don't forget

Amounts are imported directly from the Schedule K-1 and aren't adjusted for any basis or at-risk limitations.

Many items are transferred directly to the input screen to simplify data entry. However, you should review all items for accuracy and to ensure correct treatment on the 1040.

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