Which tax form is used to report income and loss from partnerships?

The correct form used to report income and loss from partnerships is Form 1065. This form is specifically designed for partnerships to report their financial activity, including income, deductions, and other information. Partnerships themselves do not pay federal income tax; instead, they pass any profits or losses through to their partners who then report it on their individual tax returns.

Form 1065 provides a comprehensive summary of the partnership's financial status for each partner on their respective Schedule K-1, which details each partner’s share of the partnership’s income, deductions, and credits. This allows the partners to report their share accurately on their personal tax returns.

The other forms mentioned serve different purposes. For instance, Form 1040 is the individual income tax return form used by individuals to report their personal income, while Form 1120-S is used by S corporations to report their income. Schedule C is utilized by sole proprietors to report income and expenses from a business they own, rather than from a partnership. Thus, Form 1065 is uniquely suited for partnerships, highlighting its importance in the tax reporting landscape.