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Entering guaranteed payments for partners on Form 1065 in ProSeries Professional

by Intuit1 Updated 5 months ago

This article will assist you with entering guaranteed payments for partners on Form 1065 in Intuit ProSeries Professional.

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.

Follow these steps to enter guaranteed payments to partners on Form 1065:

  1. Go to Form 1065, p1-3.
  2. Scroll down to page 1, line 10 - Guaranteed payments.
  3. Enter the total guaranteed payments made to partners in the Guaranteed Payments Smart Worksheet located above line 10.
    • These figures will transfer to Form 1065, page 3, Schedule K, line 4.
    • ProSeries will then apportion these payments to each partner according to the percentage selected on the Partnership Information Worksheet (profit/loss/ownership).
  4. If you don't want to apportion by percentage, you can use special allocation by going to Form 1065 p4-5, locating the Schedule K section, and entering the following letters in the Special Allocation code column:
    • Guaranteed payments for services: T
    • Medical insurance premiums paid: U
    • Guaranteed payments for use of capital: V
  5. From the left of the screen, select Sch K-1 Wks under Common Forms.
    • This will open the Schedule K-1 Worksheet.
  6. On lines T, U, and V, you can enter the dollar amount you want to allocate to each partner.
  7. From the left of the screen, select Sch K Reconcile under K&K1 Info.
  8. Review the Schedule K Reconciliation Worksheet to check your figures.
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