If my only income is a loss from a 1065 partnership, am I still required to file a personal tax return?
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Whether you are required to file a personal federal income tax return when your only income is a loss from a partnership (reported to you on a Schedule K-1 from Form 1065) depends on several factors, primarily your gross income, filing status, age, and other specific circumstances.
1. General Filing Requirement
The Internal Revenue Code (IRC) §6012(a) requires every individual to file a return if their gross income equals or exceeds the sum of the exemption amount and the standard deduction for their filing status, with additional rules for age and blindness. However, for tax years after 2017, the personal exemption amount is $0, so the filing threshold is generally the standard deduction amount for your filing status.
For 2025, the standard deduction amounts are:- Single: $15,750- Married Filing Jointly: $31,500- Head of Household: $23,625- Married Filing Separately: $15,750- Qualifying Surviving Spouse: $31,500
Additional amounts apply if you are 65 or older or blind.
2. Definition of Gross Income
Gross income includes all income from whatever source derived, including your share of partnership income or loss. However, if your only income is a loss from a partnership, your gross income is $0 (since a loss is not included in gross income; only positive income is).
3. Application to Your Situation
- If your only income is a loss from a partnership (i.e., your Schedule K-1 from Form 1065 shows a net loss and you have no other income):
- Your gross income is $0.
- You are not required to file a federal income tax return unless you are otherwise required to file for another reason (such as self-employment tax, advance premium tax credit reconciliation, or other special circumstances).
4. Exceptions—When You Must File Even With No Gross Income
You may still be required to file a return if:- You have self-employment income of $400 or more (not applicable if your only income is a loss).- You owe special taxes (such as alternative minimum tax, additional tax on a qualified plan, etc.).- You received advance payments of certain credits (e.g., premium tax credit).- You are required to file to claim a refund of withheld taxes or estimated tax payments.- You received distributions from a health savings account, Archer MSA, or Medicare Advantage MSA.- You are subject to the Affordable Care Act’s individual shared responsibility provision (though this is generally not enforced for most taxpayers as of 2025).
5. Partnership Losses and Filing
- If you have a partnership loss, you may want to file a return to claim the loss (which may offset other income or be carried forward as a net operating loss), but you are not required to file unless your gross income meets the filing threshold or another exception applies.
6. Summary Table (for 2025, under 65):
7. Citations
- IRC §6012(a): Filing requirements for individuals
- Standard deduction amounts for 2025
- IRS Publication 525: Gross income definition and partnership income
8. Conclusion
If your only income is a loss from a partnership (i.e., you have no positive gross income from any source), you are not required to file a personal federal income tax return for 2025 unless another filing requirement applies to your situation.
If you have other circumstances (such as self-employment income, advance credits, or other special taxes), you may still be required to file. If you wish to claim the partnership loss for future use, you may choose to file even if not required.
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