Article: 50471

Overview 

If you received a Schedule K-1 from a partnership (IRS Form 1065) and are required to report your share of the partnership’s income on your North Carolina Individual Income Tax Return (Form D-400), you’ll need to complete the Partnership Information K-1 screen. 

This ensures that North Carolina-sourced partnership income is correctly accounted for, especially for nonresidents and part-year residents. 

Who Needs to Report Partnership K-1 Income? 

You should complete this form if: 

• You received a Schedule K-1 (Form 1065) as a partner in a partnership, and 

• The K-1 reports income, deductions, or credits that are taxable by North Carolina, and 

You are a: 

• North Carolina residents (report all income), or 

• Nonresident/Part-year resident (report only NC-source income) 

Note: North Carolina may adjust or apportion partnership income based on residency status and source rules. Use your federal Schedule K-1 as a starting point but make sure to adjust for NC source income if you are not a full-year resident. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select North Carolina. 

4. Click on the Other tab. 

5. Select Partnership Information K1 to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see:  

2024 North Carolina D-401 Individual Income Tax Instructions