K-1 Reclass

1040SCAN is the only scan-and-populate solution to recognize K-1s. In 2020, SurePrep expanded that recognition to K-1 supplemental data and created a simple, intuitive way to reclassify K-1 data in SPbinder. This functionality allows preparers to easily assign K-1 supplemental data to the correct income and expense categories.

When users enable the K-1 reclassification tool, a fourth tab appears in the Notes/Forms/Leads workspace module: K-1 Reclass.

Inside this tab, users will see a list of Schedule K-1s captured by 1040SCAN’s OCR. Click an entity/activity to view supplemental data for that Schedule K-1. The supplemental data will display in a table that sorts information into five columns: Descriptions, Instructions, Amounts, Reclass to:, and Activity Name/Number/Type.

To assign data to the correct line items or activity, select the appropriate options from the drop-down menus in the Reclass to: or Activity Name/Number/Type columns. Once all items are assigned, click Post Reclass. SPbinder will post the changes across the binder, including to the source document, Forms, and Leadsheets.

For a live demonstration and more detailed explanation of the K-1 Reclass feature, we invite you to watch our instructional webinar. The webinar shows the full process, provides important context, and also discusses export to the tax software, automatically updating K-1 information to match the K-1, and cross-referencing K-1 data to save on review time.