Where do I enter partnership distribution from a Publicly Traded Partnership? it was listed under "other receipts" on 1099 which was not reported to IRS.

[jtesmer264]

received quarterly partnership distributions from publicly traded partnership. Amount received was listed on the 1099 under "Other Receipts & Reconciliation - Partnership Distribution" which was not reported to the IRS.

[GeoffreyG]

You actually don't enter your Partnership cash distributions anywhere on your personal tax return, despite the fact that they are (often) reported as an "other" item by your brokerage firm on Form 1099.  (The single exception to this where your the total of your annual cash distributions exceeds the "basis" in your Partnership . . . but that's an advanced tax matter, and also a somewhat rare occurrence, so we won't discuss it further here.)

Rather, the tax item that you will need to enter on your personal tax return is known as a Schedule K-1 (for Partnership).  Your Publicly Traded Partnership (PTP) should mail you a K-1 sometime between the beginning of March and the beginning of April.  It is that Schedule K-1 that you will need to enter data into TurboTax, or your other chosen tax software program.

The taxation of PTPs is often complex, particularly in the tax year in which you sell "units" of the PTP (notice that they are called units and not shares).  Thus, for years where there is a sale of PTP units, we often recommend that customers use a paid tax professional for accurate reporting.  However, in those tax years where the investor simply owns the PTP and collects cash distributions from it, the tax income tax reporting of Schedule K-1 is straightforward enough, and is well within the capability of a do-it-yourself project.

We even have a short TurboTax FAQ page to help customers find the right place to enter their Schedule K-1.  Here is the link:

https://ttlc.intuit.com/questions/1900938-where-do-i-enter-a-k-1-that-i-received

In addition, you may wish to read the following (short) tax materials on PTPs.  While these documents are not comprehensive, and don't cover all relevant aspects of PTP taxation, they are a good place to start:

https://www.mlpassociation.org/mlp-101/basic-tax-principles/

https://www.morganstanleyfa.com/public/projectfiles/598f7625-f3c1-48f4-bc7e-5802d979cd48.pdf

As an investor in PTP units, you should be aware of the basic tax principles underlying them (and these materials will help that understanding).  It will help you to make better PTP ownership decisions with respect to buy, sell, or hold.

Returning to your original question, and concluding this answer, you should just ignore the distributions amount shown on your 1099 for now.  Instead, please wait for the Schedule K-1 to arrive directly from your PTP.  It is the Schedule K-1 that you will enter into TurboTax.

Thank you for asking about this important topic; and good luck with your future investing.

[marklibera]

Distributions from partnerships are reported on Line 19 of the K-1. If you go through the questionaire, it will ask you to enter amounts from the K-1.

[Rooter]

Not true in the case of Brookfield Renewable Partners (BEP) as they do not report taxes on their K-1.  Your stock Broker deducts them from the partnership distributions and should list them in the Dividends and Distributions section of the 1099,  not in the non-reportable section of the 1099.

This what BEP says:

"The Forms 1099-INT and DIV prepared by your broker will include information on any foreign
withholding taxes that were withheld by your broker so that you may claim them, if eligible, in
your tax return as a credit and/or deduction. Because the withholding tax process is administered
by the brokerage community rather than us,,taxes withheld are only reported on Forms 1099-INT and
1099-DIV (and not on Schedule K-1)."
  "

[SRB25]

If your publicly traded partnership is held in a tax free account (e.g. IRA, SEP, Inherited IRA, etc.) do you need to enter the information in TurboTax each year?  Or can you just ignore it and pay tax when you make withdrawals from your account?

Thanks.

[MaryK4]

You do not have to report the K-1 information for a publicly traded partnership held in a tax exempt account UNLESS there is Unrelated Business Income.  This is a good (but technical) article on the UBI UBTI Reporting Requirements for Partnerships and S Corporations.  It is from 2015 so some of the form references are outdated, but the information has not changed.

@SRB25

[SRB25]

Do you know which box on the K-1 indicates UBTI?  Does TurboTax prompt me for this information when I am doing my taxes?

Thanks.

[Rick19744]

For future readers of this post, the information provided here is all over the board and mixes two types of publicly traded partnerships; one treated as a partnership and one treated as a corporation.

As such, I would recommend that you begin your own separate post if you have a question.