Foreign taxes reported on K1 not flowing to sched 3

Forum|Forum|5 years ago
April 3, 2021
10 replies
108 views

I have several sources of foreign taxes paid, 1099DIV and 2 K1s . All are small amounts adding up to about $332. Whatever I try, the amounts on the K1 do not flow to sched 3. I would override the amount on sched 3 if I could but it does not let me. Does any one have any suggestions

TurboTax Home & Biz Windows

Mike9241

Level 15

if you are single then since the FTC is over $300 you need to complete form 1116

on 1099-DIV you would link to form 1116 column A

on 1065 k-1 you would need to complete the subsection for FTC. and link to column B pf form 1116

Mike9241

leenaudAuthor

Level 2

Forgot to mention that we're filing jointly.

leenaudAuthor

Level 2

The only way around it, I found, was by manually entering the amounts on sched. 3

mgfrobozz

Level 4

I had a similar problem after I entered two K-1s (call them "A" and "B") for two trusts. The gross foreign income from A flowed through to my 1116, but the gross foreign income from B did not. I then noticed that A had a box 14 B entry, and that B did not

I contacted our CPA, who said that because the beneficiary allocation of some assets from B was not in equal parts, her software would not allocate the foreign taxes to the beneficiaries, and it would have cost more to fix it than the tax credit was worth.

I double-checked B's 2021 1099-B, verifying that foreign taxes were paid, then experimented by adding a box 14 B entry on B's K-1 in turbotax. I found that if code B was present, and set to $0, then the gross foreign income would flow to the 1116.

I was worried that the IRS would gripe about the K-1 not including the code B entry, but when I went back to the K-1 in "Forms" after the value had flowed through to the 1116, the code B entry had disappeared (probably because it was $0), so it appears to be ok.