Schedule K1 your software has a major error

5 replies
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When I enter a number in box 16G (foreign Interest expense) your software sees it as a foreign tax. That is incorrect. This is precluding me e filing my taxes. and I can not download state VA tax software.

TurboTax Free Edition Online

Answer

This doesn't sound like an error. Box 16 reports foreign transactions; all of which flow to Form 1116 for the foreign tax credit. You can see this on the schedule K-1 pg 2 instructions here: https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf What the software reads this as is based on the code and meanings are listed on page 2 (linked above) as well. Code "G" is for "interest expense" and code "L-N" are related to taxes. Let me know if you have any questions.

Anonymous

Answer

roccobel

Level 2

TurboTax has many issues with processing Sched K1. I entered 4 different K1's from different companies and Turbotax creates errors that are not there.

HeatherPLO

Level 14

@roccobel: Hello! Please let us know what issues you are having by responding to the thread here to receive. Someone will respond for further assistance.

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roccobel

Level 2

On 3 separate Sched K1 - I get this error "Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A." But all items are entered correctly - Income is 0 or negative (loss)