K-1 box 14: self-employment earnings and Schedule SE
K-1 box 14 is the Schedule K-1 (Form 1065) box a partnership uses to report a partner's self-employment items: net earnings (loss) from self-employment (code A), gross farming or fishing income (code B) and gross nonfarm income (code C). Code A feeds Schedule SE, and codes B and C support the optional methods.
“If you’re a general partner, reduce this amount before entering it on Schedule SE (Form 1040) by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties.” IRS, Partner’s Instructions for Schedule K-1 (Form 1065) (2025)
What does K-1 box 14 report?
K-1 box 14 reports the self-employment items a partner needs for Schedule SE, using three codes: A for net earnings (loss) from self-employment, B for gross farming or fishing income and C for gross nonfarm income. According to the Instructions for Form 1065 (2025), the partnership fills in box 14 only for individual partners, never for an estate, trust, corporation, exempt organization or IRA.
What goes into code A depends on the partner's status. A general partner's code A is their share of the partnership's trade or business income on the partnership's self-employment worksheet plus guaranteed payments. A limited partner's code A is only guaranteed payments for services actually rendered to or on behalf of the partnership. The Instructions for Schedule SE (2025) say whether a partner is a limited partner for this purpose depends on IRC section 1402(a)(13), not just the item G label. General partners' net earnings generally exclude portfolio dividends and interest, real estate rentals and royalties, so box 14 often differs from box 1.
Where do K-1 box 14 amounts go on Schedule SE?
Each K-1 box 14 code has a set place on the 2025 Schedule SE (Form 1040) or Schedule E, according to the 2025 partner's instructions and the 2025 Schedule SE form.
| K-1 item | What it is | Where it goes (2025) |
|---|---|---|
| Code A, from a nonfarm partnership | Net earnings (loss) from self-employment | Schedule SE, line 2 |
| Code A, from a farm partnership | Net earnings (loss) from self-employment | Schedule SE, line 1a |
| Code B | Gross farming or fishing income | Schedule E, line 42 (information), and Schedule SE, line 15 if the farm optional method is used |
| Code C | Gross nonfarm income | Schedule SE, line 17 if the nonfarm optional method is used |
| Box 20, code AQ | Conservation reserve program payments | Schedule SE, line 1b, for social security recipients |
| Schedule SE result | Self-employment tax and its deduction | Line 12 to Schedule 2, line 4; line 13 to Schedule 1, line 15 |
Codes B and C matter only for the optional methods in Schedule SE, Part II. The 2025 form allows the farm optional method only if gross farm income wasn't more than $10,860 or net farm profits were less than $7,840, and the nonfarm optional method only if net nonfarm profits were less than $7,840 and less than 72.189% of gross nonfarm income, with at least $400 of net earnings in 2 of the prior 3 years. If both spouses are partners in the same partnership, the partner's instructions say each spouse files their own Schedule SE. If the code A amount is a loss, the partner enters only the deductible amount after the basis, at-risk and passive limits.
What reduces box 14 code A before Schedule SE?
A general partner reduces K-1 box 14 code A before entering it on Schedule SE by any section 179 deduction claimed, unreimbursed partnership expenses claimed and depletion claimed on oil and gas properties, according to the Partner's Instructions for Schedule K-1 (Form 1065) (2025). Each one is figured or limited on the partner's own return.
The section 179 amount is box 12 as limited on Form 4562. Unreimbursed partnership expenses are expenses the partnership agreement required the partner to pay, deducted on a separate row of Schedule E, line 28. The Instructions for Schedule SE (2025) say a partner who reduces the box 14 amount must attach an explanation. The partner instructions also say not to reduce net earnings from self-employment for any separately stated health insurance deduction. The deductible half of self-employment tax on Schedule 1, line 15 is also one of the deductions the Instructions for Form 8995 treat as attributable to the business when figuring QBI, which links box 14 to the QBI deduction.
What does a box 14 Schedule SE calculation look like?
For example, Jordan is a general partner in a nonfarm partnership. Jordan's 2025 K-1 shows $90,000 in box 1, $60,000 of guaranteed payments for services in box 4a and $150,000 in box 14, code A. Box 12 shows a $10,000 section 179 deduction that Jordan can claim in full, and the partnership agreement required Jordan to pay $5,000 of partnership expenses that weren't reimbursed. Jordan has no W-2 wages. Amounts are shown to the cent.
| Step | Schedule SE line | Amount |
|---|---|---|
| Box 14, code A (box 1 plus box 4a) | K-1 | $150,000.00 |
| Less section 179 (box 12) and unreimbursed partnership expenses | 2 | $135,000.00 |
| Net earnings | 3 | $135,000.00 |
| Multiply by 92.35% | 4a | $124,672.50 |
| 2025 social security wage base, no W-2 wages | 9 | $176,100.00 |
| Social security portion, 12.4% | 10 | $15,459.39 |
| Medicare portion, 2.9% | 11 | $3,615.50 |
| Self-employment tax, to Schedule 2, line 4 | 12 | $19,074.89 |
| Deduction for half of SE tax, to Schedule 1, line 15 | 13 | $9,537.45 |
Without the section 179 and unreimbursed expense reductions, line 2 would be $150,000 and self-employment tax would be $21,194.33. Jordan's line 4a is under the $176,100 wage base on line 7, so the full amount is taxed at both rates. Form 4562 covers the section 179 limit that decides how much of box 12 Jordan can claim.
What do reviewers check on K-1 box 14?
A reviewer checking how K-1 box 14 reached Schedule SE confirms six items, each tied to the 2025 IRS instructions. The K-1 face comes first, because box 1, box 4 and box 12 explain the code A amount. Schedule E is second, because unreimbursed partnership expenses claimed there have to come off Schedule SE too. The partnership agreement is third, if the partner is labelled a limited partner but works in the business, because limited partner status for self-employment tax turns on section 1402(a)(13). The prior-year Schedule SE is a useful comparison: a large change in line 2 with a similar box 1 can trace to guaranteed payments, a new section 179 amount or a change in partner status. The Schedule K-1 (Form 1065) page maps the rest of the K-1.
Every line checked against the documents the client sent
Filed reads the partner's K-1, Schedule E and Form 4562, then checks every line of Schedule SE that box 14 feeds against them. Anything that doesn't tie comes back as a review item with a citation to the source.
Book a demoSchedule E line 28 deducts $5,000 of unreimbursed partnership expenses for this general partner, but Schedule SE line 2 equals box 14 code A of $150,000. Confirm whether line 2 should be $145,000.
Common questions
Do limited partners pay self-employment tax on K-1 box 14?
Limited partners pay self-employment tax on K-1 box 14 only for guaranteed payments for services actually rendered to or on behalf of the partnership. Their distributive share of income generally isn't self-employment earnings. Whether a partner counts as a limited partner for this rule depends on section 1402(a)(13), according to the 2025 Schedule SE instructions.
Why is box 14 code A different from box 1?
Box 14 code A differs from box 1 because it adds guaranteed payments for services and leaves out income that isn't self-employment earnings. The Instructions for Form 1065 (2025) exclude items such as most real estate rentals, portfolio dividends and interest, and net gain from Form 4797, Part II, and limited partners report only guaranteed payments.
What if K-1 box 14 shows a loss?
If K-1 box 14 shows a loss, the partner enters only the deductible amount on Schedule SE, according to the 2025 partner's instructions. The loss first has to clear the basis, at-risk and passive activity limits, so a loss suspended for income tax purposes isn't used to reduce self-employment earnings in that year.