Schedule K-1 Form 1065

Question

Hi,

I already filed my return with FreeTaxUSA last week, but I just got a Schedule K1 in the mail. I attempted to amend the return but because this is a PTP FreeTaxUSA won't accept the form and says I have to use another tax service.

If I'm interpreting this K1 right, I only have $21 in income. I entered the form without checking PTP and it did not affect my return at all.

I really don't want to start over with TurboTax and pay them $150 or whatever it is — would I have to somehow withdraw my return first and re-enter everything in TurboTax?

I'm already broke and have been unemployed for 20 months. I don't need another headache here for 21 bucks. Any advice? It's really lousy that I got this form late and that FreeTaxUSA can't handle this PTP check box for some reason.

Clay · Answer

https://community.freetaxusa.com/discussion/2161/schedule-k-1-form-1065

I had the same problem. Fortunately, after reaching out to my Financial Advisor he told since this was for an IRA, therefore I did not need to include it in my return.  Maybe that is the same for you?

GeorgeM · Answer

Hello VR3:
 As you already noticed in this thread, our software does not currently support Schedule K-1s issued in connection with publicly traded partnerships.  Thus, we are understandably hesitant to offer suggestions when our software does not support the taxpayer’s specific tax issue.  However, we can offer some general thoughts regarding your tax questions.

First, the loss reported in Box 11 with code C may likely be a passive loss which generally only offsets income from the same publicly traded partnership.  Based on your post, it does not appear that the partnership reported any income, and therefore, you will probably want to to track the loss reported in Box 11 so that you can use it in subsequent tax years in the event the partnership reports taxable income to you.  That passive loss is reported in Part II of Schedule E, Supplemental Income and Loss.

Second, if all that needs to be reported is the passive loss, and reporting the passive loss does not change anything on your previously filed Form 1040, then arguably no amendment is necessary.  In that circumstance, you might consider mailing Schedule E to the appropriate IRS office; however, before taking this approach, discuss it with your personal tax advisor in order to verify that no amendment is necessary, and that mailing the missing Schedule E is sufficient.

VR3 · Answer

Hi

I am facing the same issue. I filed the tax for 2025 and later received the Schedule K1 and see that Free Tax USA does not support PTP. As other mentioned, i do not want to use another software just for this to be amended. Also the income is $0 as i just made a purchase, but see a loss in 11C. What are the other options. Can i do a paper filing? If so please can you advice what has to be done.

Thank you