Effective for tax year 2021, Schedule K-2 and K-3 replace, supplement, and clarify the reporting of certain amounts formerly reported on Schedule K, line 14 (1120-S) and Schedule K, line 16 (1065).

The IRS will allow taxpayers to file their Schedule K-2 and K-3 via PDF attachments for the entire 2024 filing season (TY2023).

To add Schedule K-2 and K-3 to an 1120-S return:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Shareholders Share of Income and Deductions (Schedule K) dropdown, then click Foreign Transactions.

3. Continue with the interview process to enter all appropriate information. Checking the checkbox within interview question “Schedule K-2 and K-3 – Items of International Relevance” will allow you to attach a PDF of both the Schedule K-2 and K-3 during the filing steps.

To add Schedule K-2 and K-3 to a 1065 return:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Pass Through Items dropdown, then click Foreign Transactions.

3. Continue with the interview process to enter all appropriate information. Checking the checkbox within interview question “Schedule K-2 and K-3 – Items of International Relevance” will allow you to attach a PDF of both the Schedule K-2 and K-3 during the filing steps.

Additional Information: