Which form must partnerships use to report earned income?

Partnerships report earnings and other financial information to the Internal Revenue Service (IRS) using Form 1065, which is the U.S. Return of Partnership Income. This form provides the IRS with details about the partnership's income, deductions, and credits. However, it's important to note how partners receive their share of the partnership's income.

Each partner in a partnership receives a Schedule K-1 (Form 1065) that breaks down their individual share of the partnership's income, deductions, or credits. The Schedule K-1 is crucial for partners to report their earnings on their personal tax returns, as it specifies the amount of income that each partner needs to include when calculating their own tax liabilities.

Therefore, when referring to the reporting of earned income attributed to partners, the Schedule K-1 is the form that highlights each partner's share derived from the partnership's earnings. It essentially communicates the partnership's financial information to individual partners, allowing them to accurately report this income to the IRS.