Recently the only client I have left cancelled their service that they pay for yearly. The last payment they made was last year (2023). Do I still need to fill out a Schedule K-1 for my 2024 taxes? The CPA fee will take out half of the money the partnership has left.
I don't want to dissolve the partnership because I'm hoping to still find other avenues for extra income.
If the partnership needs to file a 1065, you must complete a Schedule K-1 for partners.
You may not, however, need to file a 1065. Per the IRS instructions for form 1065 (emphasis mine):
Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.
The instructions go on to say that a return is not required if "The partnership had no effectively connected income during its tax year;"
So double-check with your accountant, and if you have no income or expenses, you may not have to file at all for 2024.
