How does Filed AI extract and process K-1 Data?

Filed’s AI model is engineered to accurately interpret, extract, and structure all relevant data contained within Schedule K‑1 forms issued from the three primary pass‑through U.S. income tax return sources:

• Form 1041 (Estates and Trusts)

• Form 1120-S (S Corporation)

• Form 1065 (Partnership Income)

Our extraction logic is aligned with CCH Axcess Tax, Drake Software, ProConnect, Ultratax CS and Lacerte’s architecture, enabling clean transfer to their corresponding fields and removing the need for manual data‑entry.

See below for additional details on how Filed AI handles each K-1 type.

Form 1041 (Estates and Trusts)

The model can accurately extract and interpret the information reported on Schedule K-1 (Form 1041), which details the beneficiary's share of income, deductions, credits, etc. from an estate or trust.

• Data Entry Screens supported:

  • Entire General Screen (Estate’s or Fiduciary’s information, Beneficiary information, etc.)

  • Entire Activity Information (Lines 1 through 14)

  • Carryovers (PALs, ST and LT Capital Losses, Ordinary PALs, Section 1231 PALs, QBI Carryovers, At-Risk Carryovers, etc.)

  • QBI activity data entry screens (up to 15 QBI activities)

  • Foreign Taxes activity information (Taxes Paid/Accrued, all foreign income/deduction options, etc.)

  • Multi-state data entry fields

Form 1120-S (S Corporation)

The model is fully capable of processing and extracting data from Schedule K-1 (Form 1120-S), covering shareholder's share of income, deductions, credits, etc. from an S corporation.

• Entire General Screen (Corporation’s information, Shareholder’s information, current year allocation %, number of shares, etc.)

• Entire Activity Information (Lines 1 through 17) whether passive, nonpassive, active rental real estate or materially participating real estate professional

  • Schedule 1 deductions such as: IRA/Keogh/SEP/SIMPLE/401(k) and Self-Employed Health Insurance Deduction (SEHI) linked to 1120S Schedule K-1

• Carryovers (PALs, ST and LT Capital Losses, Ordinary PALs, Section 1231 PALs, QBI Carryovers, At-Risk Carryovers, etc.)

• QBI activity data entry screens (up to 15 QBI activities)

• Foreign Transactions from Schedules K-3 (Taxes Paid/Accrued, all foreign income/deduction options such as foreign interest, dividends, qualified dividends, foreign short and long term capital gains/losses, etc.)

• Basis Limitation Information (Beginning Basis, Increases and Decreases to Basis items, etc.)

• Business Use of Home (Form 8829 linked to 1120S Schedule K-1)

• Basis Carryovers

• Multi-state data entry fields (including state income taxed at PTE level, state passthrough entity credits, etc.)

Form 1065 (Partnership Income)

The model supports the extraction and analysis of Schedule K-1 (Form 1065), which outlines a partner's share of partnership income, deductions, credits, and other items.

• Data Entry Screens supported:

  • Entire General Screen (Partnership’s information, Partner information, Part L capital account analysis, Partner’s share of liabilities, type of partner info, PTP, etc.) 

  • Entire Activity Information (Lines 1 through 21) whether passive, non-passive, active rental real estate or materially participating real estate professional

    • Schedule 1 deductions such as: IRA/Keogh/SEP/SIMPLE/401(k) and Self-Employed Health Insurance Deduction (SEHI) linked to 1065 Schedule K-1

  • Carryovers (PALs, ST and LT Capital Losses, Ordinary PALs, Section 1231 PALs, QBI Carryovers, At-Risk Carryovers, etc.)

  • QBI activity data entry screens (up to 15 QBI activities)

  • Foreign Transactions from Schedules K-3 (Taxes Paid/Accrued, all foreign income/deduction options such as foreign interest, dividends, qualified dividends, foreign short and long term capital gains/losses, etc.)

  • Basis Limitation Information (Beginning Basis, Increases and Decreases to Basis items, etc.)

  • Business Use of Home (Form 8829 linked to 1065 Schedule K-1)

  • Basis Carryovers

  • Multi-state data entry fields (including state income taxed at PTE level, state passthrough entity credits, etc.)