How do I clear an error message in the review process that says I need another Form K-1 worksheet for Box 16, saying I have more than one type of foreign gross income?

[luke622]

Actual wording is, "Box 16 Description has been entered for more than one type of deduction. Use separate K-1 worksheets to report more than one type of foreign deductions sourced at the entity level.

My K-1 has figures for Box 16 B, E, L, N, P. The TT forms filler says I need more work sheets if I had entries in boxes 16 F/G/H. I DON"T have entries in those other boxes, so why the error message? And how do I generate a worksheet anyway...I thought that was what TT did?

[nexchap]

When dealing with foreign tax reporting, anything labeled 'passive', 'general', and 'foreign branch' need to be separated.

So you've got code L (Deductions -- Foreign Branch) and code N (Deductions -- General Branch) on the same K-1.  That's what TT wants you to separate.  You do that by telling TT that you need to add another K-1, and just populate it with the offending entries (it looks like 16N).

[luke622]

OK...but how do I tell TT I want another K-1? Do I just add one for the same company on the forms generator? Would I fill out all the other info that the original one had, except change the Box 16 inputs? or do I leave it blank except for a changed Box 16? Sounds like a recipe for double reporting!

[nexchap]

Do I just add one for the same company on the forms generator? -------- Yes

Would I fill out all the other info that the original one had, except change the Box 16 inputs? --------- No.  You only want to enter anything tax related once.  So typically that means entering the whole K-1, except the problem entry(s), on the first worksheet and then the problem entry(s) on the second.  Both would have the same company name, etc though you might give the second one a name like ABC partnership (reporting 16N)

[luke622]

I'll try this. I just don't get it because the TT form generator page says I only need separate K-1 worksheets if I have more than one entry for 16 F/G/H. I don't have entries for ANY of those.

[rogge1722]

The codes E and L are income and deductions related to "foreign branch category of income". Code G and N are income and deductions for the "general category of income." Since the G.P. did not provide an amount for G, that makes code N meaningless.

Go back to the interview, skip thru to box 16 and delete both the descriptor and amount for N and that will clear the error.