In the wages/income section of K3. It asks to enter "foreign country or U.S. possession but drop-down menu doesn't include the U.S. All values are from the U.S.?

[Bogey1]

For K3 entry line A in premier desktop, it is asking me to enter "Name of Country or U.S. possession".  All my data is from the U.S. however, the drop-down menu does not include the U.S.,  Can you please assist?

[JohnB5677]

The K-3 reports a partner’s share of items of international tax relevance. It's an extension of the Form 1065 Schedule K-1.

The US would not be included as a foreign international country.  Therefore, it's not listed.

You should contact the preparer of the K-1to confirm there is no international activity.  There is an exception that states you may not need a K-3 at all.

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)." 

New exception to completing Schedule K-3  Also see:  Domestic filing exception (exception to filing Schedules K-2 and K-3)

Basically, if there is no international activity, you're not required to enter anything for the K-3.

If this does not completely answer your question, please contact us again and provide some additional details.

[Bogey1]

Thank you for the quick reply but I'm still confused.  Schedule K3 Part 1, 2, 3 and 4 amounts are only United States and for sure no foregin source.  

 Turbo tax step is worded as follows:

Enter info from your schedule K-3

On your Schedule K-3, go to Part II , Section 1, Line 24 go to lines A, B and C and enter the foreign country for which you are reporting foreign taxes paid or accrued.

Foreign Country or U.S. possession (and below it is the dropdown menu)

 Do I just enter Not applicable in it since all amounts contained in the K-3 is from the United States?

Thank you so much for your help and expertise!

[MaryK4]

Yes, you will enter Not Applicable since it is all U.S. information.  @Bogey1 

[edayxe]

I have the same issue.  On my K1 box 16 is checked. But on my schedule K3 part 2 section 1 line 24 it shows income with code US in A.

Is it possible that my K3 is wrong? 

Any suggestion how to fix it in TurboTax?

The way I understand it, it reports an Foreign income but gives the country code as US.

TT drop-down list also shows: Various , XX , 909 income.

May I use one of these codes?

[edayxe]

I just want to add that in K3 part 2 section 1 the income is reported in column 1 (which is U.S) nothing in columns B-F

[edayxe]

My K3 part 2 section 1 and section 2 have column g (Total) with reported amounts.

Why is Turbo tax not asking me about column G ?

[DaveF1006]

It depends. A partnership with no foreign source income, no assets generating foreign source income, and no foreign taxes paid or accrued may be reporting information to partners on Schedules K-3. For example, if you claim a credit.

If you have only US income, with no foreign income reported on your K-3, you do not need to file the K-3 because there is no Foreign Tax Credit to claim.

@edayxe 

[Donna551]

So if K-3 is provided but shows no foreign income and the K-1 box 16 is checked to say K-3 attached are you saying to just not say K-3 is attached?

[anza]

I have the same question and issue.  Do we just not check the box that says we received a K3, if there's no foreign income?

[edayxe]

So, the confusion is that in TurboTax there are 2 steps to box 16. 

The first step you check the box and when you get to the 2nd step you uncheck it.

I feel it is the accountants way to torture us.

In the first step TurboTax asks you to check all the boxes that are checked on your K1.

Then when it goes over the amounts you need to enter for each box. When it comes to box 16 it asks again if box 16 is checked. But on that screen there is a little note that says:

"If your schedule K3 has no foreign income or taxes on it, you can answer "No" to this question.

See screenshot below.