Which form is used by partnerships to file Schedule K-1?

Partnerships use Form 1065 to report their income, deductions, gains, losses, etc., from the partnership operations. This form serves as an informational return and does not calculate any tax liability for the partnership itself since partnerships are generally pass-through entities.

As part of this process, Schedule K-1 (Form 1065) is generated for each partner in the partnership. This schedule provides a detailed breakdown of each partner’s share of the partnership's income, deductions, credits, and other items that they must report on their individual tax returns. Thus, the use of Form 1065 is essential for accurately reporting and distributing the financial information to each partner.

The other forms listed have different purposes: Form 1040 is used by individuals to file their personal income tax returns; Form 1120 is utilized by corporations to report their income; and Form 990 is designated for tax-exempt organizations to provide information about their activities, governance, and financial data to the IRS.