TurboTax is giving me this error:
Sch K-1 Wks-Partnerships (*partnership name*): Box 16 Description-1 has been entered for more than one type of income. Use separate K-1 worksheets to report more than one type of foreign gross income sourced at the entity level.
My Box 16 has the following codes:
A, B, C, D, F, I, J, Q, U
My guess is that TurboTax is not liking that Codes D and F are in that same box. Note that Code D (Foreign gross income - Section 951A category) was added this year to Schedule K-1 (Form 1065).
Why is it telling me to create a new K-1? Note that boxes 1, 2, and 3 are empty, so there are not multiple sources of income.
Please help so I can send my taxes. 🙂
Box 16 (D and F) conflict. However, you have an additional issue to consider. You have 16 Q. That is foreign taxes accrued, not paid. By default, we report foreign income and taxes when paid, not accrued. If you want to change to the accrual method, you can select it on f1116. But it raises 2 problems. Once you select accrued, you can't reverse it. This means that you cannot use foreign taxes paid from a 1099 or any other source now or in future. Also it cannot be split. It's either all accrued or all paid. Most users elect to retain the default "paid." If you choose to remain as is, then there is no reason to fill out f1116. So the simplest way is to elect not to fill out f1116. To do that, in Forms Mode, bring up the K-1 partner. Scroll down to 16 Foreign transactions. Just above 17, there is a quickzoom to enter additional info. Click on it to bring up the Additional info wks. Under the header Codes P,Q etc,. locate 3a. It states "do you elect to forego completion of f1116". Check the Yes box. . After doing so, all errors will be cleared.
Since accrued means the taxes were owed but not paid in TY2018, it is reasonable to assume that they will be paid sometime in TY2019, so you can claim it next year as paid.
TT doesn't support multiple types of income on a single K-1. Sames goes for Box 1 & Box 2, for example - can't have both on the same K-1. You have to create an additional K-1 for each additional type. That's a program limitation.
That has already been done (i.e., Part III, Box 1 income is on a K-1 and Box 2 income is on a separate K-1) and the error persists. The error relates to Box 16 and TT highlights 16-B Gross Income from All Sources. There is not a basis to subdivide the figure provided on the K-1.
@TerryA Boxes 1, 2, and 3 are completely EMPTY!!! Box 16 has entries for A, B, C, D, F, I, J, Q, and U. TurboTax is complaining because D and F are there together. I'm sure the same will happen if E was present with either D or F as well.
Again, this has NOTHING to do with Boxes 1, 2 and 3, as they are completely empty!
Box 16 (D and F) conflict. However, you have an additional issue to consider. You have 16 Q. That is foreign taxes accrued, not paid. By default, we report foreign income and taxes when paid, not accrued. If you want to change to the accrual method, you can select it on f1116. But it raises 2 problems. Once you select accrued, you can't reverse it. This means that you cannot use foreign taxes paid from a 1099 or any other source now or in future. Also it cannot be split. It's either all accrued or all paid. Most users elect to retain the default "paid." If you choose to remain as is, then there is no reason to fill out f1116. So the simplest way is to elect not to fill out f1116. To do that, in Forms Mode, bring up the K-1 partner. Scroll down to 16 Foreign transactions. Just above 17, there is a quickzoom to enter additional info. Click on it to bring up the Additional info wks. Under the header Codes P,Q etc,. locate 3a. It states "do you elect to forego completion of f1116". Check the Yes box. . After doing so, all errors will be cleared.
Since accrued means the taxes were owed but not paid in TY2018, it is reasonable to assume that they will be paid sometime in TY2019, so you can claim it next year as paid.
Have no idea what all this means but it worked - error disappeared! Thank you very much
Hello, I’m getting an error for Box 16 D code has an invalid selection and I only have B,C, D to complete in 16? Please help!!
Is this K1 from a partnership (1065) or S-Corp (1120S)?
@wong0093 You will report the K1 with just the information reported in Box 1. You will make no other entries.