K-1 Box 18, Code A. Turbotax is asking for the name of the state that paid tax-exempt interest reported in this box. Would this be the state the partnership operates in?

[zr]

 Or my state of residency? It looks like this income was Section 988 Gain/Loss on Foreign Currency Exchange.

[PatriciaV · Accepted solution]

Check the supplemental information that came with Schedule K-1. That document should include the source of the tax-exempt income. If it relates to Foreign Currency Exchange, the source may be outside the US. For this reason, if you cannot find this information in the K-1 packet, contact the entity that sent the K-1 for additional help.

[zr]

If it is foreign, what do I do here? "Foreign" isn't an option under state.

[PatriciaV]

While there is not an option to choose "foreign" for Box 18 Code A, you may choose "more than one state." This would be considered the "other" category. But be sure you check the supplemental information to be sure.

[zr]

Thanks