I received a K-1 for distributions from a trust account. Box 2a and 2b show ordinary and qualified dividends of $1,993. Box 12 shows codes A, B, J for Alternative min tax adjustment. All boxes have -331. Box 14 shows code B of 8, code E of 1,993, code I of 22, and three items of code Z. The three Z items are:
Z (Foreign Gross Receipts and Expenses Total: 3,592)
Z (AMT Foreign Taxes Total: 8
Z (AMT Foreign Gross Receipts and Expenses: 3,618)
As I click through TurboTax and enter information from the K-1, I then get the message: U.S. source income plus foreign gross income sourced at beneficiary level should not be greater than total gross income sourced at beneficiary level.
The program wants me to enter U.S. source income. On the K-1 it doesn't have a category for U.S. source income so I left that entry blank. Now when I do the federal review I get the error message showing the K-1 worksheet and telling me to enter U.S. source income. TurboTax won't allow me to e-file until this error is fixed. Now what?
