Schedule K-1 that belongs on Form 8960

[LJN123]

How do I indicate in Turbotax that a Schedule K-1 is subject to the Net Investment Income Tax and should appear on Form 8960?

[ThomasM125]

You would enter the Schedule K-1 on your personal return in TurboTax and if it reported investment income (interest, dividends, rental income, etc...) it will populate on Form 8960, Net Investment Income Tax. The pertinent box numbers on a partnership K-1 schedule would be boxes 2 through 11, with the exception of box 4 for guaranteed payments.  On an S corporation they would appear on lines 2 through 9. 

[LJN123]

The K-1 is for a company that is an Investment LLC.  It was formed in late 2025, so the only activity in 2025 was for legal and other professional fees which were reported on Line 1, but since this is an Investment Company, I believe the net activity should flow to the Form 8960.  Is there anyway to get them to flow to the Form 8960?

[ThomasM125 · Accepted solution]

If you indicate that you did not actively participate in the business, the income will be treated as passive income and as such it will appear on Form 8960 as investment income. You will see a question regarding that after you enter the income in the K-1 entry section.

[LJN123]

Thank you! I really appreciate your help.  Love this forum.