U.S. · Tax forms
Form 1065 line 9, salaries and wages.
Wages other than to partners, less employment credits, and what the instructions keep off this line.
Line 9 (“Salaries and wages (other than to partners) (less employment credits)”) is the salaries and wages paid or incurred for the year, reduced by the Work Opportunity Credit, Empowerment Zone Employment Credit and Credit for Employer Differential Wage Payments. Payments to partners for services go on line 10.
Look up a wage item
Result
Line 9 items, 2025 instructions
| Item | Meaning | What the IRS says |
|---|---|---|
| Salaries and wages paid or incurred | Line 9 | Enter the salaries and wages paid or incurred for the tax year, reduced by the listed credits |
| Work Opportunity Credit (Form 5884) | Reduces line 9 | One of the three credits the amount is reduced by |
| Empowerment Zone Employment Credit (Form 8844) | Reduces line 9 | Applicable credit if any |
| Credit for Employer Differential Wage Payments (Form 8932) | Reduces line 9 | One of the three credits |
| Credit passed through from another entity | Do not reduce | Do not reduce the allowable deduction for any portion of the credit passed through to the partnership from another pass-through entity |
| Wages in cost of goods sold | Not line 9 | Amounts reported elsewhere on the return, such as in cost of goods sold |
| 401(k) elective contributions | Not line 9 | Elective contributions to a section 401(k) arrangement are not included |
| SEP salary reduction and SIMPLE IRA | Not line 9 | Amounts contributed under a salary reduction SEP or SIMPLE IRA plan are not included |
| Payments to partners for services | Line 10 | Guaranteed payments to partners: payments determined without regard to partnership income and allocable to a trade or business |
Partners are not on line 9
The line label says “other than to partners.” Line 10 takes guaranteed payments to partners, and the instructions also include medical insurance premiums paid for a partner, spouse, dependents or children under age 27 there. Distributive shares of profit are not deductible at all.
Credit math
Work Opportunity Credit, Empowerment Zone Employment Credit and Credit for Employer Differential Wage Payments reduce the deduction so the wages are not deducted and credited twice. The exception is a credit passed through from another entity, which does not reduce the deduction.
Where retirement money goes
The form has a separate line 18, “Retirement plans, etc.” The line 9 instructions state only that 401(k) elective contributions and SEP/SIMPLE salary-reduction amounts are not included in wages here.
Worked example
Trillium Landscaping LLP (made up) paid employees $182,000 in wages and has a $6,000 Work Opportunity Credit on Form 5884. Line 9 shows $176,000. A $90,000 guaranteed payment to a partner is reported on line 10, not here. Names and figures are made up.
More line pages in this set
Related lines: Form 1065 Line 14, Form 1065 Line 21, Form 1065 Line 20.
Sources
- Instructions for Form 1065 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 1065 (2025), U.S. Return of Partnership Income: the printed line wording and arithmetic on the form (Form 1065 (2025), created 11/25/25). Read November 2, 2026.
Tax year 2025 forms and instructions: Form 1065 (2025) and its 2025 instructions. Line numbers and labels were read from the IRS PDF and instructions on the date read and can change between tax years, so check them against the form for your year. Names in worked examples are made up.
Frequently asked questions
What goes on Form 1065 line 9?
Salaries and wages paid or incurred for the year to people other than partners, reduced by the Work Opportunity, Empowerment Zone Employment and Employer Differential Wage Payment credits.
Are partner payments on line 9?
No. The line is “other than to partners.” Guaranteed payments to partners go on line 10.
Why does the amount get reduced by credits?
So the same wages are not deducted and also taken as a credit. The instructions list Forms 5884, 8844 and 8932.
Do I reduce line 9 for a credit passed through from another entity?
No. The instructions say not to reduce the allowable deduction for any portion of a credit passed through to the partnership from another pass-through entity.
Where do wages in cost of goods sold go?
Not on line 9. Salaries and wages reported elsewhere on the return, such as in cost of goods sold, are not included.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.