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Screen K1-4 - Schedule K-1, 1065 / 1120S - SE, Credits, Withholdings, Frgn (1040)
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Self-employment Earnings (Loss)
Net earnings (loss) from self-employment
Enter the Net earnings (loss) from self-employment from the partnership Form 1065, Schedule K-1 line 14A.
note
This field isn't available for activities coded as S corporation. If data is present in this field when it is shaded, the data is ignored.
The amount in this field transfers to Schedule SE and is used in the calculation of qualified business income, Keogh/SEP/SIMPLE, IRA contribution limitations, Schedule EIC, child tax credit, and the child care credit.
The amount in this field is reduced by any of the following to calculate the self-employment earnings for Schedule SE and for use in the calculations mentioned above.
- Amounts in the Other deductions statement in the K1-3 screen with code 1 (Use to reduce partner SE earnings & include in QBI) or code 2 (Use to reduce partner SE earning: don't include in QBI).
- The amount of auto expenses from the Auto Worksheet
- Depreciation and amortization from the 4562 screen or the asset module
- Section 179 expense deduction from the K1-3 or 4562 screens or the asset module
- The amount from theUnreimbursed partner expensesfield in the K1-6 screen
- The amount of home office expenses from the Business Use of Your Home Worksheet
- The amount in theDepletionfield in the K1-6 screen or the UltraTax/Oil & Gas module
- The amount of business expenses from the Supplemental Business Expense (SBE) Worksheet
- Amounts in the Debt-financed acquisition interest statement in the K1-3 screen with code1
See the Net Earnings from Self-employment Worksheet for the detail of the taxpayer and spouse with self-employment earnings.
Gross farming or fishing income
When you elect the optional farm method in the OtherTax screen, the amount you enter here transfers to Schedule SE for calculation of the self-employment tax.
Gross nonfarm income
When you elect the optional nonfarm method in the OtherTax screen, the amount you enter here transfers to Schedule SE for calculation of the self-employment tax.
Conservation reserve payments to SSA/SSDI recipients
Enter the amount of CRP payments eligible for exclusions for the taxpayer. The amount you enter here transfers to Schedule SE, line 1b.
Credits and Withholdings
Low-income housing interest acquired before 1990
Enter
X
in this field if the entity was acquired before 1990. The Form 8582-Cr Worksheet 2 uses this field for passive activities with the low-income housing credit.Research credit allowed for this activity (Force)
The research credit is calculated based on the income from the activity producing the credit and indicates the calculated amount on Form 3800, Page 3, line 1c and 4i. A nonsubmittable statement is produced to support the calculation of this limitation. To use an amount other than the calculated amount, enter that amount here. The data in this field is accumulated for each activity and reported on Form 3800, line 1c and 4i. Enter
0
(zero) if the calculated amount is 0. See Form 3800, Page 3, line 1c and 4i Instructions for more information on how to calculate the limitation.Taxpayer is NOT an eligible small business for research credit
Enter
X
to calculate the research credit before the minimum tax on Form 3800, Page 3, line 1c. All returns default as eligible small business unless one of these fields is marked.Pass-through entity taxes (State return only)
Enter a pass-through entity tax (PTET) credit for a 1040 return.
Backup withholding/federal income tax withheld
Enter any backup withholding or federal income tax withheld in this field. A submittable statement is created automatically using the entity's EIN, address, and backup withholding amount.
State income tax withheld (
2025
)/(2026
)Schedule A includes the state income tax withheld (
2025
) amount as an itemized deduction. Amounts in the State income tax withheld (
and 2025
)(
fields will be included on the appropriate tax return as tax withheld. Don't include amounts entered elsewhere.2026
)State income tax withheld (
2025
)Federal column
California, Hawaii, Wisconsin:
This amount transfers to the state K1-4 screen field for
Total Sources State income tax withheld
to be used in the calculation of the K-1 Basis and At-Risk Allocation Worksheets.2025
State, if different
California, Hawaii, Wisconsin:
This amount is included in the payments section of the main return. For nonresident/part-year returns, this amount also transfers to the state K1-4 screen field for
Instate Sources State income tax withheld
to be used in the calculation of the K-1 Basis and At-Risk Allocation Worksheets for instate sources.2025
State income tax withheld (
2026
)Federal column
California, Hawaii, Wisconsin:
This amount isn't used in the state return.
State, if different
California, Hawaii, Wisconsin:
This amount is included in the payments section of the main return. This amount isn't used in state K-1 basis or at-risk calculations.
Local income tax withheld (
2025
)/(2026
)Schedule A includes the local income tax withheld (
2025
) amount as an itemized deduction. Amounts in the Local income tax withheld (
and 2025
)(
fields will be included on the appropriate tax return as tax withheld. Don't include amounts entered elsewhere.2026
)Local income tax withheld (
2025
)Federal column
Enter the amount of local withholding from all localities attributable to the K-1 activity that was withheld in
2025
. This amount is used with the amount of state income tax withheld on the basis and at-risk worksheets to calculate the amount for federal Schedule A.California, Hawaii, Wisconsin:
This amount transfers to the state K1-4 screen field for
Total Sources Local income tax withheld
to be used in the calculation of the K-1 Basis and At-Risk Allocation Worksheets.2025
State, if different
California, Hawaii, Wisconsin:
California, Hawaii, and Wisconsin don't have a provision to report local withholding on the main return. For nonresident/part-year returns, if local withholding was paid by the pass-through entity directly to a local taxing authority, enter the instate source amount directly on the state
K1-4 screen
field for Instate Sources Local income tax withheld
to be used in the calculation of the K-1 Basis and At-Risk Allocation Worksheets for instate sources.2025
Indiana:
Enter the amount of Indiana county withholding attributable to the K-1 activity that was withheld in
2025
. This amount is reported on Indiana Schedule 5 or Schedule F.Local income tax withheld (
2026
)Federal column
Enter the amount of local withholding from all localities attributable to the K-1 activity that was withheld in
2026
. This amount isn't used in basis or at-risk calculations and isn't reportable on 2025
federal Schedule A.California, Hawaii, Wisconsin:
This amount isn't used in the state return.
State, if different
California, Hawaii, Wisconsin:
This amount isn't used in the state return.
Indiana:
Enter the amount of county withholding attributable to the K-1 activity that was withheld
2026
. This amount is reported on Indiana Schedule 5 or Schedule F.Exclude state and local income tax withheld from basis calc
Enter
X
to exclude federal amounts entered in State income tax withheld (
and 2025
)Local income tax withheld (
fields from the Partner's Basis Worksheet, Page 2.2026
)Foreign Transactions
Gross income from all sources
This amount is used to complete the entity's portion of Form 1116, line 3e, Gross income from all sources. When left blank and Form 1116 is produced, the information entered on the K1 to K1-3 screens is used to calculate the entity's gross income for Form 1116, line 3e. Use data from the 1116 screen field.
Total foreign taxes paid
Enter the amount of total foreign taxes paid as reported on the Schedule K-1 on the 1116 screen in this activity to complete the foreign tax credit information.
Total foreign taxes accrued
Enter the amount of total foreign taxes accrued as reported on the Schedule K-1 on the 1116 screen in this activity to complete the foreign tax credit information.