On a Schedule K-1, “STMT” is shorthand for “statement” and tells you the figure for that box is too detailed to fit on one line, so the entity has attached a supplemental page with the breakdown. Partnerships, S corporations, and trusts use this convention whenever a single dollar amount can’t capture what needs to be reported, and the attached pages contain the actual numbers you’ll use on your personal return.1Internal Revenue Service. Partner’s Instructions for Schedule K-1 (Form 1065) (2025)
An asterisk in the left column of the box, with “STMT” in the space where a dollar amount would normally sit, is your signal to flip to the attachment. Skipping those pages almost guarantees you’ll report something wrong.
Where STMT Usually Shows Up
STMT tends to appear in the catch-all boxes that use letter codes to categorize different types of activity. A single entity can generate multiple pages of attachments for just one of these boxes.
Partnership K-1 (Form 1065)
On a partnership K-1, expect STMT most often in Box 11 (other income), Box 13 (other deductions), and Box 20 (other information). Box 20 alone carries dozens of letter codes, from the Section 199A qualified business income data under Code Z to noncash charitable contributions and Section 743(b) basis adjustments.1Internal Revenue Service. Partner’s Instructions for Schedule K-1 (Form 1065) (2025)
S Corporation K-1 (Form 1120-S)
S corporation shareholders commonly see STMT in Box 12 (other deductions), Box 13 (credits and credit recapture), and Box 17 (other information). Box 17 works much like Box 20 on the partnership version.2Internal Revenue Service. Shareholder’s Instructions for Schedule K-1 (Form 1120-S) (2025)
Trust or Estate K-1 (Form 1041)
Beneficiaries get K-1s too, and they use the same STMT convention. Common spots are Box 9 (directly apportioned deductions such as depreciation and depletion), Box 11 (final-year deductions), Box 13 (credits and credit recapture), and Box 14 (other information).3Internal Revenue Service. 2025 Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR
What the Attached Statement Actually Contains
The supplemental pages give you the line-by-line figures for specific forms and worksheets on your personal return. Content varies by entity, but a few categories drive most of the volume.
Section 199A Qualified Business Income
The most common reason for a multi-page STMT attachment is the Section 199A qualified business income deduction. Eligible owners of pass-through businesses can deduct up to 20 percent of their qualified business income, plus 20 percent of qualified REIT dividends and publicly traded partnership income.4Internal Revenue Service. Qualified Business Income Deduction The One Big Beautiful Bill Act, signed in July 2025, made the deduction permanent, so it stays fully available for 2026 and beyond.
The calculation needs several separate figures: the qualified business income itself, the W-2 wages paid by the business, and the unadjusted basis of qualified property. On a partnership K-1 these appear under Box 20, Code Z, and because the item involves multiple numbers, the box almost always reads “STMT” rather than a single dollar amount.1Internal Revenue Service. Partner’s Instructions for Schedule K-1 (Form 1065) (2025) Without them you cannot complete Form 8995 or Form 8995-A.
Basis-Related Items
The statement also breaks out items that affect your outside basis in the entity. Tax-exempt income increases your basis; non-deductible expenses decrease it. Neither shows up as taxable income or an allowed deduction, but both change the amount of loss you can claim and the gain or loss you’ll recognize if you sell your interest.5IRS. Partner’s Outside Basis S corporation shareholders use the same data to complete Form 7203, which is now required whenever you claim a deduction, loss, or distribution from an S corporation.6IRS. Instructions for Form 7203
Foreign Items Go on K-3, Not the STMT
If your K-1 involves foreign income or foreign taxes, that information generally lives on Schedule K-3 rather than in a STMT attachment. Box 16 on the partnership K-1 points you to the K-3 for items of international tax relevance, and the IRS specifically tells taxpayers not to use the Box 21 foreign-tax figure to complete Form 1116 but to rely on the K-3 instead.7Internal Revenue Service. 2025 Partner’s Instructions for Schedule K-1 (Form 1065) If your K-1 references a K-3 you didn’t receive, contact the entity before filing.
How to Enter Statement Data on Your Return
Tax software routes most figures automatically once you type them in, but you have to enter every line from the attached statement yourself. The software has no way to see what’s inside the STMT pages. Most platforms give you a dedicated area for supplemental K-1 data where you pick the box number, choose the letter code, and enter the description and amount exactly as the statement shows them.
Where each figure lands on your Form 1040 depends on what it is. Ordinary business income and loss flow to Schedule E. Section 199A figures feed Form 8995 or 8995-A. Credit items reach their own credit forms. S corporation shareholders reporting any loss, deduction, or distribution also need Form 7203 to demonstrate they have enough basis to claim those amounts.6IRS. Instructions for Form 7203 Miss one line and you’ll create a mismatch between what the entity reported to the IRS and what appears on your return.
What to Do If the Statement Is Missing
Seeing “STMT” on the K-1 with no supplemental pages behind it happens more than it should, especially near the filing deadline. Statements sometimes get separated during mailing or PDF generation.
Contact the partnership, S corporation, or trust and ask for the missing pages. The IRS instructions say to notify the entity and request a corrected K-1 rather than guessing at the numbers or altering your copy.8Internal Revenue Service. 2025 Shareholder’s Instructions for Schedule K-1 (Form 1120-S)
If the entity won’t cooperate, file your return using your best estimate and attach Form 8082 to disclose that you’re treating an item differently than the entity reported it. Form 8082 puts the IRS on notice that you know about the inconsistency, which matters because filing without it can expose you to automatic adjustments, penalties, and interest.9Internal Revenue Service. Instructions for Form 8082 (Rev. October 2025) You also use Form 8082 when the entity never provides a K-1 at all by the time your return is due.
Penalties for Getting It Wrong
The IRS matches every K-1 the entity files against the corresponding individual return. When the numbers don’t line up, the usual result is a CP2000 notice proposing changes. That’s not technically an audit, but ignoring it can escalate into one.10IRS. Challenging Information Returns
If the mismatch causes you to understate your tax, the accuracy-related penalty under Section 6662 is 20 percent of the underpayment. It applies when the understatement exceeds the greater of 10 percent of the tax you should have reported or $5,000. If you claimed the Section 199A deduction, that 10 percent threshold drops to 5 percent, making the penalty considerably easier to trigger.11Office of the Law Revision Counsel. 26 U.S. Code 6662 – Imposition of Accuracy-Related Penalty on Underpayments
Adequate disclosure of an inconsistent position on Form 8082, with a reasonable basis for your treatment, eliminates the substantial-understatement penalty for that item. The worst outcomes almost always trace back to taxpayers who ignored the STMT label and either left the box blank or plugged in a guess.