How do I enter incoming K-3 information? I recieved it with my K-1.

[leap500]

I received incoming K-1 from my partnership has Box 16 checked with the attached K-3.  How do I enter the K-3 information on my TurboTax business desktop version?  I've already completed my entry of the K-1 information and there are no foreign taxes on the K-1 or K-3.

[LindaS5247]

You can access and enter Schedule K-3 using Forms mode in TurboTax for desktop. This will allow you to enter the additional information from the K-3 you received.

1. Open your return and click on the Forms icon in the TurboTax header.
2. Look for K-1 Partner for the related Schedule K-1 in the left column.
3. Click the form name to open it in the large window.
4. Scroll down below Box 16 for the Schedule K-3 Worksheet.
5. Enter the information from the Schedule K-3 you received on the appropriate lines of the worksheet.
   Note those with asterisks do not flow to other tax forms; you'll need to enter this information manually in what form is appropriate. Also note the QuickZoom link for Foreign Tax information.

Click here for Partner's Instructions for Schedule K-3's 2022.

Per this IRS guidance:  New exception to completing Schedule K-3.

Under a new exception, in certain cases, partnerships with no or limited foreign activity are not required to furnish Schedule K-3 to you for tax years beginning in 2022. See Domestic Filing Exception in the Partnership Instructions for Schedules K-2 and K-3 (Form 1065).

[leap500]

I don't see any K-3 Worksheet after Box 16. After Box 16 to 21 is a Section A - Qualified Business Income Deduction - Statement A Information.

[LindaS5247]

Switch to Forms Mode.

Over to left side on your screen type in K-1 and click on the K-1 Form.

[leap500]

I am working on my 1120S and not my 1040.

[DaveF1006]

To clarify, are you a partnership or S-corp? Information seems to coflict.

[leap500]

It is for my 1120S (S Corp) filing. The K-1 and K-3 are incoming from partnerships that I am holding in my S Corp.

[AliciaP1]

Since an S-Corp is not eligible to take a foreign tax credit, you simply need to enter the Foreign Tax Paid or Accrued from line 21 into the K-1 entry in your S-Corp returns and they do not get reported on your S-Corp Schedule K or K-1(s).

To enter a Partnership K-1 into your Form 1120S in TurboTax Business you can follow these steps:

1. Within your return under the Federal Taxes tab and Income, scroll down to Schedules K-1 and click Start
2. Enter your K-1 as shown on the Schedule you received

@leap500 

[leap500]

The incoming K-3 doesn't have any foreign taxes. The partnership is in the US, but they have to report domestic income on the K-3.

[RobertB4444]

If the K-3 is reporting domestic activity then it will primarily be numbers that are already on the K-1.  You'll have a chance to enter any new information into the system as the last step in entering the K1 - it will take you to the forms view and you should enter any info from the K3 at that point.

@leap500 

[AustinCrew]

How do you handle deductions which don't show the source country? I have deductions on the K-3 but they only show up under Sourced by Partner column.