Extract data from Schedule K-1 forms
A Schedule K-1 reports one owner's share of a partnership's or S corporation's income, and for anyone invested in funds it is the document that turns tax season into a waiting game. The Form 1065 K-1 a private-equity or hedge-fund investor receives reports their distributive share across a grid of coded boxes: ordinary business income in Box 1, net rental real estate income in Box 2, interest in Box 5, dividends in Box 6, capital gains in Boxes 8 and 9, and a Part II that identifies the partner, their profit, loss, and capital percentages, and the beginning and ending capital account under the tax-basis method. A family office tracking 60 fund positions has 60 K-1s arriving on different dates, each one feeding a different line of the investor's Form 1040.
The complication is the coded structure and the supplemental detail. Box 13 (other deductions) and Box 20 (other information) carry letter codes (Code A, Code Z for Section 199A) whose meaning is defined in the K-1 instructions, and Box 20 Code Z routinely points to a multi-page statement of qualified business income figures attached behind the form. The partner's capital account reconciliation in Part II Section L has a beginning balance, contributions, current-year income, distributions, and an ending balance that must tie out. Footnotes attached to the K-1 modify the boxed amounts. A nominee or a tiered partnership adds another layer of pass-through.
Talonic reads the K-1 by box number and code, captures the Part II partner identification and capital account reconciliation, and pulls the attached Section 199A and footnote statements as linked detail, so a preparer or fund administrator works from structured figures rather than a stack of scans.
What gets extracted from Schedule K-1 forms
How extraction works for Schedule K-1 forms
K-1s are produced by fund administrators and tax software such as CCH Axcess and GoSystem, and they reach investors as PDFs and scans with an attached statement set. Talonic reads the form against the Schedule K-1 box map in the Field Registry, which binds each distributive-share amount to its box and code rather than its position. Part II partner identification and the Section L capital account reconciliation are captured as a structured block, and the beginning balance, contributions, current-year income, distributions, and ending balance are checked to tie out. Coded entries in Box 13 and Box 20, including Code Z for Section 199A, are captured as code-and-amount pairs and linked to the supplemental statements they reference. Every value returns with a confidence score and pixel-region provenance under DIN SPEC 91491 conformity, so a preparer can verify a box against the source K-1.
Sample extraction
A Form 1065 Schedule K-1 with a Section 199A statement attached
{
"tax_year": 2025,
"form": "1065",
"partnership_name": "Cedar Ridge Capital Partners LP",
"partnership_ein": "98-7654321",
"partner_name": "Mitchell Family Trust",
"profit_pct": "2.50%",
"loss_pct": "2.50%",
"capital_pct": "2.10%",
"box_1_ordinary_income": 42800,
"box_5_interest": 3150,
"box_9a_lt_capital_gain": 18600,
"box_19_distributions": [
{
"code": "A",
"amount": 30000
}
],
"box_20_codes": [
{
"code": "Z",
"amount": null,
"references": "Section 199A statement"
}
],
"capital_account": {
"beginning": 481000,
"current_year_income": 64550,
"distributions": 30000,
"ending": 512400,
"method": "tax basis"
}
}Frequently asked
Does it capture the Section L capital account reconciliation?
Yes. The beginning capital, contributions, current-year income, withdrawals and distributions, and ending capital are captured as a block, and the figures are checked to reconcile so an out-of-balance capital account is flagged.
How are Box 20 codes such as Code Z handled?
Coded entries return as code-and-amount pairs, and a code that references an attached statement, such as Box 20 Code Z pointing to the Section 199A qualified business income detail, is linked to that supplemental statement rather than dropped.
Does it handle the 1065 and 1120-S K-1 variants?
Yes. The partnership Form 1065 K-1 and the S corporation Form 1120-S K-1 share most boxes; the schema maps each variant by its box numbering so the distributive-share amounts route correctly.
What fields are extracted from Schedule K-1 forms?
Talonic returns Schedule K-1 forms as schema-validated, typed fields. Common fields include Partnership Name, Partnership EIN, Partner Name, Profit / Loss / Capital %, and more, each normalized (dates to ISO 8601, amounts as numbers) and mapped to a stable key so the output shape stays the same across layouts.
How accurate is extraction from Schedule K-1 forms, and how is confidence reported?
Every extracted cell carries a confidence score from 0.0 to 1.0 and a provenance pointer back to the source page and region, so low-confidence values can be reviewed against the original before the data is trusted downstream. There is no single accuracy number: confidence is reported per field so you can gate on it.
Can I use Schedule K-1 forms extraction in production?
Yes. The same engine behind this guide is available as a production REST API and Node SDK with sync, async, and streaming modes, schema versioning, signed webhooks, and EU-resident processing. Start free with an API key, then scale on usage-based pricing.
What does it cost to extract data from Schedule K-1 forms?
There is a free tier for prototyping and agent evaluation with no credit card. Paid usage is credit-based at 1,000 credits per euro: page ingestion is 100 credits per page and registry-resolved queries are free. See talonic.com/pricing for current rates.
Ready to extract from your own Schedule K-1 forms?
Author note
Reviewed by Talonic engineering, schema review · last reviewed 2026-06-11