Partnership Instructions for Schedule K-1 (Form L-1065) - How to Complete

Sep 19, 2026

Instructions explain how partnerships must prepare and provide Schedule K-1 (Form L-1065) to partners each year, including timing requirements tied to the partnership return filing date. It covers how to mark final or amended returns, which parts contain partnership and partner details, and how to compute and enter federal data, exclusions/adjustments, and city taxable income. Guidance includes specific handling for partner classification codes and reporting rules for downstream partnerships.

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Partnership Instructions for Schedule K-1 (Form L-1065)

Column B, Exclusions and Adjustments

How to Complete Schedule K-1 (Form L-1065)

Part I. Information About the Partnership

Part II. Information About the Partner

Part III. Partner’s Share of Current Year Income, Exclusions/Adjustments and City Income

Column A, Federal Partnership Return Data

Column C, City Taxable Income

General Information Partnership Instructions for Schedule K-1 (Form L-1065) Column B, Exclusions and Adjustments Generally, a partnership is required to prepare and give Schedule K-1 (Form L-1065) to each person who was a partner in the partnership at anytime during the year. Schedule K-1 (Form L-1065) must be provided to each partner on or before the day on which the partnership return is required tobe filed. Partnerships electing to pay tax that have a partnership partner (downstream partnership) are required to provide Schedule K-1 (Form L-1065) to each partner of the downstream partnership (or chain of such partnerships) if the tax for the downstream partnership is calculated based on the downstream partnership’s partner’s classification. How to Complete Schedule K-1 (Form L-1065) If the return is for a fiscal year or a short tax year fill in the fiscal tax year spaces at the top of each Schedule K-1. If this is a final or an amended K- 1, mark (X) the appropriate box at the top of each Schedule K-1 . On each Schedule K-1, enter the information about the partnership and the partner in Parts I and II (items A through M) . In Part III, enter: in column A the amounts from the partners federal Schedule K-1 (Form 1065); in column B the amounts of exclusions or adjustments to the amounts in column A; and in Column C the partner’s city taxable share of each item of income, deduction or information. Part I. Information About the Partnership On each Schedule K-1, enter (A) the identifying number of the partnership, and its (B) name and address. Also enter the (C) partnership’s business allocation percentage (Form L-1065 , Schedule D, line 5 or special formula line d) . Part II. Information About the Partner On each Schedule K-1 complete the information for the partner for items E through I1 and J through M as it was completed on the partner’s federal Schedule K-1 (Form 1065) . For item I2, if the partner code for item I1 is a code that represents an individual, estate or trust, enter in item I2 the following code for the partner: R for resident partner, N for a nonresident partner, PR for the resident portion and PN for the nonresident portion of the year for a part-year resident partner. See Appendix J, Partner Classification Table, for additional information. For Item I3, mark (X) the box if the partner is a retirement plan. For item N enter the partner’s partner number as reported on Form L-1065 , Schedule 1. When a partner is apart-year resident, two Schedule K1’s (Form L-1065) are to be issued, one for the resident portion of the year and one for the nonresident portion of the year as two lines are required for reporting the partner’s income. If the partnership elects to pay tax and the partner is a partnership, mark (X) the item D box and enter the partnership partner’s identification number. Complete the other items for this partnership partner. Parts III and Part IV for this downstream partnership is a compilation of their partner’s Schedules K-1 . Also, complete a Schedule K-1 (Form L-1065) for each partner of the downstream partnership completing item D for the downstream partnership and completing Part II, Part III and Part IV for each downstream partnership partner. Part III. Partner’s share of Current Year income, Exclusions/Adjustments and City Income. This part of the Schedule K-1 (Form L-1065) is divided into three columns: Column A, Federal Partnership Return Data; column B, Exclusions and Adjustments; and column C, City Taxable Income. Column A, Federal Partnership Return Data. Column A, line 1, lines 2 through 13 and line 20 are used for reporting income, deductions and other information as reported on the federal Schedule K-1 (Form 1065) for the partner. In each line of column A enter the data as reported in the federal Schedule K-1 except for lines 1a, 11, 13 and 20 follow the instructions below. Line 1a. Ordinary income from other partnerships. This line on the city Schedule K

FAQs

When must a partnership provide Schedule K-1 (Form L-1065) to partners?

Schedule K-1 (Form L-1065) must be provided to each partner on or before the day the partnership return is required to be filed.

How should a partnership fill in fiscal year and final/amended K-1 indicators?

If the return is for a fiscal year or a short tax year, fill in the fiscal tax year spaces at the top of each Schedule K-1. If the K-1 is final or amended, mark (X) the appropriate box at the top of each Schedule K-1.

How are Column B and Column C amounts determined on Schedule K-1?

Complete Column C first (city taxable income) for each line 1 through 13. Once the Column C amount for a line is entered, Column B is calculated by subtracting Column C from Column A for that line. Blank amounts are read as zero (0).

Sep 19, 2026

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