Items A to D and Part I
Withholding foreign partnership and QDD questions, which of Parts I to XII apply, an amended K-2 box, and Part I's 13 boxes for attachments such as foreign oil and gas taxes, Form 5471 information and dual consolidated loss.
1065
Partners' Distributive Share Items—International
- Agency
- IRS
- Revision
- 2025
- Fillable fields
- 2799
- Pages
- 19
- Official source
- IRS form page
- Checked
- October 21, 2026
Schedule K-2 (Form 1065): Partners' Distributive Share Items, International
Schedule K-2 (Form 1065) is Partners' Distributive Share Items, International. The About Form 1065 page says Schedules K-2 and K-3 are extensions of Schedule K, used to report items of international tax relevance from the operation of a partnership, and that they were new for tax year 2021. The form says to attach it to Form 1065.
The partnership completes it. Items A and B ask whether the partnership is a withholding foreign partnership or a qualified derivatives dealer, and item C asks which of Parts I through XII apply. Each part answered Yes is completed and attached.
This page covers the 2025 schedule. You can fill it out free in your browser on this page and download it without an account.
What's on Schedule K-2 (Form 1065)
Part II: foreign tax credit limitation
Gross income and deductions by U.S. source, foreign branch, passive, general and other category income, and income sourced by partner, with a total column.
Part III: information for Form 1116 or 1118
R&E expenses and interest expense apportionment factors, foreign-derived intangible income (FDII) deduction apportionment factors, foreign taxes, and other tax information such as section 743(b) adjustments.
Part IV: section 250 deduction for FDII
Information partners use on Form 8993 to determine deduction eligible income (DEI), qualified business asset investment (QBAI) and foreign-derived deduction eligible income (FDDEI).
Parts V to VIII
Distributions from foreign corporations to the partnership, partners' section 951(a)(1) and 951A inclusions, PFIC information, and the partnership's interest in foreign corporation income under section 960.
Parts IX to XII
Partners' information for the base erosion and anti-abuse tax (section 59A), foreign partners' character and source of income and deductions, section 871(m) covered partnerships, and a QDD's section 871(m) tax liability.
How to fill out Schedule K-2 (Form 1065)
- 1
Name, EIN and items A and B
Enter the partnership's name and employer identification number (EIN). Answer items A and B, entering the WP-EIN or QI-EIN when the answer is Yes.
- 2
Item C and item D
Check Yes or No for each of Parts I through XII. The form says to complete and attach each part answered Yes. Item D(1) is checked for an amended K-2.
- 3
Part I
Check the boxes for the additional specified attachments that apply. Box 13, other international items, takes an attached description and statement.
- 4
Parts II and III
Enter each line by column and total it. Column (e) of Part II takes a category code, and Part III, Section 5 also has a country code entry for its other column.
- 5
Parts IV to XII
Complete each remaining part answered Yes in item C, such as Part IV for Form 8993 information or Part X for foreign partners.
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Where it goes and related schedules
Attach to Form 1065
The form says to attach it to Form 1065, so it goes to the IRS with the partnership's return.
Instructions
The form points to www.irs.gov/Form1065. The About Form 1065 page links Instructions for Schedules K-2 & K-3 and separate Instructions for Schedule K-3.
Partner copies
Partners get Schedule K-3 (Form 1065). The partner's instructions say it reports items of international tax relevance from the operation of a partnership.
Filing exceptions
The About Form 1065 page lists expanded and new filing exceptions for Schedules K-2 and K-3 (Form 1065) beginning tax year 2024, posted 4-JUNE-2025.
Related forms
1065
U.S. Return of Partnership Income
440 fields, 6 pages
1065
Partner’s Share of Income, Deductions, Credits, etc.—International
2,862 fields, 21 pages
1065
Partner's Share of Income, Deductions, Credits, etc.
111 fields, 1 page
1116
Foreign Tax Credit (Individual, Estate, or Trust)
118 fields, 2 pages
1118
Foreign Tax Credit—Corporations
1,263 fields, 12 pages
8993
Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)
71 fields, 1 page
Who fills out Schedule K-2 (Form 1065)?
The partnership completes it as part of its Form 1065. It is not filed by individual partners.
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Questions about Form 1065
Who files Schedule K-2 (Form 1065)?
The partnership, attached to its Form 1065. The About Form 1065 page says Schedules K-2 and K-3 are extensions of Schedule K.
When did Schedules K-2 and K-3 start?
The About Form 1065 page says they are new for tax year 2021.
Does every part have to be filled in?
No. Item C asks whether each of Parts I through XII applies, and the form says to complete and attach the parts answered Yes.
Is there an exception from filing it?
The About Form 1065 page notes expanded and new filing exceptions for Schedules K-2 and K-3 (Form 1065) beginning tax year 2024. The separate instructions describe them.
Which forms use this information?
Part III is titled Other Information for Preparation of Form 1116 or 1118, and Part IV covers information for Form 8993.