Enter unreimbursed partnership expenses (not deductible as an itemized deduction on Schedule A (Form 1040) Itemized Deductions), directly on the Schedule K-1 (Form 1065) in the Additional Information section. The total amount of unreimbursed partnership expenses will flow to Schedule E (Form 1040) Supplemental Income and Loss, on page 2. The name on Line 28 of Schedule E will be reflected as "UPE" (Unreimbursed Partnership Expenses). This amount will also flow to the Schedule SE (Form 1040) Self-Employment Tax as an adjustment.
To enter this in your TaxAct return:
- From within your TaxAct Individual return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
- Click theBusiness Incomedropdown, then click Partnership income (Form 1065 Schedule K-1).
- Click + Add Partnership Schedule K-1 to create a new copy of the form or click Editto edit a form already created (desktop program: click Review instead of Edit).
- Continue with the interview process until you reach the screen titled Partnership - Unreimbursed Partnership Expenses, enter your info in the field belowUnreimbursed partnership expenses to report on Schedule E, then click Continue.
Note. There is a separate worksheet to enter the business use of your home expenses.
Additional Information
Per IRS Publication 587 Business Use of Your Home (Including Use by Daycare Providers), on page 20:
Partners
You may be allowed to deduct unreimbursed ordinary and necessary expenses you paid on behalf of the partnership (including qualified expenses for the business use of your home) if you were required to pay these expenses under the partnership agreement and they are trade or business expenses under section 162.
If you are using actual expenses to figure your deduction for the business use of your home, use the Worksheet To Figure the Deduction for Business Use of Your Home, later. If you are using the simplified method to figure your deduction for the business use of your home, use the Simplified Method Worksheet, later.
Deducting unreimbursed partnership expenses. See the following forms and related instructions for information about deducting unreimbursed partnership expenses.
- Schedule E (Form 1040), Supplemental Income and Loss.
- Schedule SE (Form 1040), Self-Employment Tax.
- Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc.
More information. For more information about partners and partnerships, see Publication 541, Partnerships.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.
