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"
  }
}

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