What I intended to convey in the first sentence is that the Box 2a amount wouldn't necessarily be included in US Sourced Income, although the tax-exempt interest likely would be.
Since there's foreign tax shown in Box 14, there's presumably foreign income somewhere on the K-1, and it may well be the Box 2a amount. As I noted initially, the foreign tax is what's triggering the screen you're asking about.
As far as research, results are admittedly fairly spotty when it comes to Box 14 Code A. When it came to your question, I looked at
- Box 14 -- Other Information in the Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR
- Box 14 -- Other Information in the Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (Note that this is for the preparer of Schedule K-1, unlike the link above, which is for the beneficiary), and
- Box 14 on Page 2 of Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc.
I apologize for any ambiguity.
@chnoiseoff
