Partnership K-1
Partnership K-1 checklist
A partnership return is only as good as the partner records behind it. The K-1 has to reflect each partner's ownership, capital account, distributions and share of income, and those details change when a partner joins, leaves or takes a distribution. This checklist covers what to collect before preparing the 2026 Form 1065 and the Schedules K-1, including the partner-level items that stay off the partnership return.
Who sends itSent by the tax preparer to the partnership's managing partner or bookkeeper after the year ends and before the Form 1065 and K-1s are prepared.
0 of 26 ticked
01Entity and ownership
02Capital accounts and distributions
03Year-end books
04Partner details
05Questions for the partnership
What firms get wrong
- Preparing the K-1s before the ownership changes are documented, which puts the income on the wrong partner.
- Using the prior-year ownership percentages after a partner joined or left during the year.
- Missing a distribution made directly to a partner instead of through the partnership bank account.
- Treating a loan to a partner as a distribution, or a distribution as a loan, which changes the capital account.
- Collecting partner tax IDs in an email instead of a secure field.
Get this checklist when it changes
We'll email you when this checklist changes, and about once a month with new checklists and templates. Unsubscribe any time. Privacy
Questions about this checklist
What is a Schedule K-1?
Schedule K-1 reports each partner's share of the partnership's income, deductions, credits and other items. The partnership files the K-1 with Form 1065 and gives a copy to each partner for use on the partner's own return.
When is a partnership return due?
A calendar-year Form 1065 is generally due March 15, 2027 for tax year 2026. An extension gives more time to file, but it does not extend the time for the partners to pay tax.
What if a partner is another business entity?
Ask for the entity's legal name, tax classification and taxpayer identification number. The K-1 goes to the entity, and the entity reports its share on its own return.
What records support a partner's capital account?
The partnership agreement, the contribution and distribution records, the prior-year K-1 capital account analysis and the year-end trial balance. These should reconcile to the capital account on the return.
How are guaranteed payments reported?
Guaranteed payments are reported on the partner's K-1 and are generally subject to self-employment tax. Ask for the amount paid to each partner and the period it covers.
Sources
Checked November 3, 2026. Tax rules, forms and thresholds change; confirm them with the IRS or your tax software before relying on them.
Ready to stop chasing?
Start free trialChecklist from usual.so · https://usual.so/checklists/partnership-k1-checklist/