Schedule K-1 Line 11 Code A

[TaxStudent200]

I received Schedule K-1 for an interest in a partnership. Line 11 has income listed as Code A (other portfolio income). The additional description provided by the partnership states “other miscellaneous portfolio income”. TurboTax considers this nonpassive income since I selected “other portfolio income” in the interview question. Is this always the case? Is Code A income always considered nonpassive? In what situation would it be considered passive and how would I determine this?

[PatriciaV · Accepted solution]

Yes, by definition, portfolio income is non-passive, as compared to active (earned income) or passive (activities where you don't materially participate or rental income). You can read more about this here: IRS Publication 925 (2025), Passive Activity and At-Risk Rules.

The partnership that prepared Schedule K-1 may be able to explain why this activity was reported as portfolio income.