Does H&R Block Deluxe Support Schedule K-1? Upgrade to Premium

H&R Block Deluxe does not support Schedule K-1 forms from partnerships or S corporations. If you received a K-1 from either entity type, you’ll need to move up to H&R Block Premium or use a different product before the software will let you enter that income. Deluxe handles itemized deductions, homeownership, and basic 1099 investment income, but partnership and S corporation K-1s require calculations that H&R Block reserves for its higher tiers.¹²

Where Deluxe Stops

Deluxe is built around the common individual return: itemizers, homeowners, and filers with straightforward dividends or capital gains on Form 1099. The online edition runs $70 plus $49 per state.¹ What it doesn’t include is the interview flow or the underlying calculation engine for a partnership K-1 (Form 1065) or an S corporation K-1 (Form 1120-S).²

If you begin entering K-1 data in Deluxe anyway, the program will stop you and offer an upgrade. The mid-filing upgrade keeps everything you’ve already entered, so you don’t lose progress, but you do pay the price difference between the two tiers.

The Tier You Need: H&R Block Premium

Partnership and S corporation K-1s require at least H&R Block Premium. Online Premium is $110 plus $49 per state.³ The desktop version of Premium is $95, and Premium & Business, which also handles the business entity return itself, is $115.⁴ The desktop edition generally includes more features than the identically named online product, so if your K-1 is complicated the download is the safer choice.

The Premium tiers include screens for the items that make K-1s messy: the Qualified Business Income deduction under Section 199A, Section 179 expensing, passive activity loss limits, and basis tracking. Data entered on the K-1 screens then flows to the correct forms behind the scenes, including Schedule E for supplemental income and Form 8995 for the QBI deduction.⁵

Cheaper Ways to File a K-1

If paying for Premium just to enter one K-1 feels excessive, two other products are worth knowing.

FreeTaxUSA includes Schedule K-1 support for partnerships, S corporations, estates, and trusts in its free federal tier. Federal is free; each state return is $15.99.⁶ For a clean K-1 with ordinary income and no unusual codes, it is difficult to beat on price. The interface is plainer than H&R Block’s, but the return gets filed.

TurboTax also puts K-1 entry behind a paywall. Its Premium tier is $129 for federal plus $59 per state.⁷ That’s more than H&R Block Premium; the interview is more polished, and whether the difference is worth it depends on how much guidance you want.

What a K-1 Reports, Briefly

Schedule K-1 is how a partnership, S corporation, estate, or trust passes tax items through to you. The entity generally doesn’t pay income tax on those items itself; it files its own return and gives you a K-1 showing your share of income, losses, deductions, and credits, which you then report on your Form 1040.⁸

Three variants exist, matching three entity types:

Form 1065, Schedule K-1, issued by partnerships
Form 1120-S, Schedule K-1, issued by S corporations
Form 1041, Schedule K-1, issued by estates and trusts

The most frequently populated boxes are Box 1 (ordinary business income or loss), Box 2 (net rental real estate income or loss), and Box 20, a catch-all for items such as QBI information and Section 179 deductions.⁹ Box 1 amounts generally land on Schedule E, Part II. Box 2 rental income is usually treated as passive activity income unless you are a real estate professional who materially participated.⁸ The Deluxe boundary applies to the partnership and S corporation versions; the file does not address whether Deluxe handles Form 1041 K-1s from estates and trusts.

Entering the K-1 Once You’ve Upgraded

Inside Premium, K-1 entry lives under the Income section. You select “Partnerships, S-Corps, and Trusts,” which opens the K-1 interview. The first screen asks for the entity’s name, address, and Employer Identification Number, all of which appear in the header of your K-1.

The interview then walks through the K-1 box by box, starting at Box 1. Box 20 has its own screen where you enter the two-character code (for example, “Z” for QBI information) with the matching dollar amount. From there the software routes each item to the correct form: ordinary business income to Schedule E, QBI figures to Form 8995, and so on.¹⁰

One point that trips people up on paper is handled quietly by the software: partnerships and S corporations don’t compute the QBI deduction themselves. They pass you the raw numbers, and you calculate the deduction on your own return using Form 8995 or 8995-A.¹⁰

When Software Isn’t the Right Tool

A single, clean K-1 is well within what Premium can handle. Certain situations push past what consumer software does gracefully:

Multiple K-1s. Each one needs its own basis tracking, passive activity analysis, and possibly separate state allocations. Errors multiply.
Multi-state filing. If the entity operates in states where you don’t live, you may owe income tax there. State allocation and credit rules vary, and most consumer software handles this awkwardly.
Basis uncertainty. If you haven’t tracked basis over the years and you’re now claiming a loss or took a large distribution, a preparer can reconstruct the history.
Released passive activity loss carryforwards. Disposing of an activity after years of suspended losses raises tax treatment questions that get complex quickly.

Fees for preparers handling K-1 returns vary with the number of K-1s, the states involved, and overall complexity. Expect to pay meaningfully more than for a plain 1040, and weigh that against the cost of an error on a return you filed yourself.

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H&R Block. Deluxe and State Tax Preparation Software
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H&R Block. Premium Small Business Tax Software 2025-2026
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H&R Block. Online Taxes Made Easy: E-file Tax Services
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H&R Block®. Premium Small Business Tax Software
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Internal Revenue Service. About Form 8995, Qualified Business Income Deduction Simplified Computation
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FreeTaxUSA. How to E-File a Schedule K-1 Form on FreeTaxUSA
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TurboTax. TurboTax Do It Yourself Premium 2025-2026
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Internal Revenue Service. Partner’s Instructions for Schedule K-1 (Form 1065) (2025)
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Internal Revenue Service. Schedule K-1 (Form 1065) 2025 Partner’s Share of Income, Deductions, Credits, etc.
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Internal Revenue Service. Instructions for Form 8995 (2025)