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February 23, 2021
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Partnership distribution

  • February 23, 2021
  • 1 reply
  • 2 views

I have received a 1099B from Schwab that shows partnership distribution but it says it is not reported to IRS.  After searching for how to report this income it always mentioned values from a K-1 form, but I don't have a K-1 and the stock is held by Schwab so how do I report this income? 

    Best answer by Irene2805

    Expert Reviewed

    It sounds as if this is a publicly traded partnership (PTP).  

     

    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.  

     

    You need to wait for the K-1, which the PTP should mail to you sometime in March.  It is the K-1 that should be entered into your tax return.

     

    To enter information from Schedule K-1 when you receive it, please follow these steps:

     

    TurboTax CD/Download

    1. Click on Federal Taxes > Wages & Income [In TT Self-Employed Personal > Personal Income > I'll choose what I work on
    2. Under Other Business Situations, click on the box next to Schedules K-1, Q.
    3. Click Yes on the next screen, Schedules K-1 or Q.  
    4. On the Tell Us About Your Schedules K-1 screen.  Click on the Start/Update box next to Partnership.
    5. If you have already entered K-1 information, you will see the Partnership/LLC K-1 Summary screen.  Click Add Another K-1 to enter your information  (or click on Edit to continue with the existing form entry).    
    6. If you haven't started entering K-1 information, continue through the screens, entering the requested information.

     TurboTax Online

    1. Click Wages & Income.
    2. In the S-corps, Partnerships, and Trusts  section, click the Start/Update box next to Schedule K-1.
    3. Continue with step 4 above.

    1 reply

    Irene2805Answer
    Level 15
    February 23, 2021

    Expert Reviewed

    It sounds as if this is a publicly traded partnership (PTP).  

     

    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.  

     

    You need to wait for the K-1, which the PTP should mail to you sometime in March.  It is the K-1 that should be entered into your tax return.

     

    To enter information from Schedule K-1 when you receive it, please follow these steps:

     

    TurboTax CD/Download

    1. Click on Federal Taxes > Wages & Income [In TT Self-Employed Personal > Personal Income > I'll choose what I work on
    2. Under Other Business Situations, click on the box next to Schedules K-1, Q.
    3. Click Yes on the next screen, Schedules K-1 or Q.  
    4. On the Tell Us About Your Schedules K-1 screen.  Click on the Start/Update box next to Partnership.
    5. If you have already entered K-1 information, you will see the Partnership/LLC K-1 Summary screen.  Click Add Another K-1 to enter your information  (or click on Edit to continue with the existing form entry).    
    6. If you haven't started entering K-1 information, continue through the screens, entering the requested information.

     TurboTax Online

    1. Click Wages & Income.
    2. In the S-corps, Partnerships, and Trusts  section, click the Start/Update box next to Schedule K-1.
    3. Continue with step 4 above.