How do i enter k-1 box 16 foreign transactions?

[gailrita1]

my problem comes after entry. the next screen wants to know if the foreign transaction "source" amounts are foreign or US. I have no idea how to answer this and whether it makes any difference which answer I give.

[PatriciaV]

The supplemental info for the K-1 should advise if the transaction source was US or foreign. In most cases, foreign income has a foreign source.

[johnbreen58]

Great. A generic answer to a question I didn't ask.     The problem I had reported is that the Line B and Line C are different.   According to the IRS, they only allow deductions on the partnership income. However intuit expects a separate K1 form -which is required nor valid.  There is no way to electronically file either because intuit classified this as an error.  I should point out 4 companies reported it this way.... two electronically.   Please re-open and come back with an informed response.

[johnbreen58]

I should clarlfy that 4 K1 reported that the total gross income in box 16 was difference that the partnership income.   This is fine with the IRS .... NOT AN ERROR.  However intuit software says two K1 need to be files to maximize deductions even thought the IRS won't deduct the total gross number.   So I was prevented from an EFILE capability and was told to print.

[jcambre]

I had the same issue. This required that i print and mail both fed and state hardcopy AFTER i paid the fee to electronically submit to state. Thanks for picking my pocket, Intuit. Last time, that.

[PatriciaV · Accepted solution]

Yes, you may enter the information from Schedule K-1 Box 16 in TurboTax for desktop as follows:

1. Use the Find box in the TurboTax header to search on "k-1." Click the jump-to link to go to the start of the section.
2. Choose the type of K-1 you need to work on by clicking Start/Update.
3. Add a new K-1 or edit a K-1 you have already entered.
4. Follow the prompts to the page "Check boxes that have an amount" and check Box 16.
5. Continue to the page "Enter Box 16 Info" (see screenshot #1 below - click to enlarge).
6. Choose the country in the drop-down for Box 16a.
7. Choose the codes(s) on the K-1 from the drop-down under "Enter Other Codes" and enter the amount for each code in the box.
8. Continue to save your entries.

If you have more than one country for Box 16, you will need to add another K-1 to report each country.

If you have Box 16 codes that do not appear in the drop-down, click the Forms icon in the TurboTax header. The relevant form should be open in the mail forms window.

Scroll down to Line 16 and click the "QuickZoom" button at the bottom right corner of that section (screenshot #2). This opens another worksheet to enter additional codes.

When you are finished, click Step-by-Step in the header to return to the K-1 entry section. 

[zimmerjoe2]

Should the foreign income flow to the 1116 then to the 1040 as income?

[poohdog1849]

how do I know which country if the partnership has not furnished it

[APolaski]

So is there a bug in Turbo Tax for Box 16?  It keeps giving me errors telling me to complete additional K-1s !!!  Even though I am filling out the forms correctly.

[wsanville]

I have the same issue.  Turbo keeps indicating I need to fill out a new K-1 when I indicated that the income was "various".  I do not have a list of where the income was derived.  The amount is $25.00 and will not change my tax burden.  I too have paid to submit my taxes electronically.  Is there any way to override the error message and submit the tax forms electronically?

[bxhst]

I had the same issue and searched turbo Tax help center under help on top left.   I searched K1 box 16.  There is a answer beginning with "Issues regarding Box 16 Foreign transaction are becoming a plague.  Just followed instruction.  The error will be solved..

[whyisthissodifficult]

So are you saying your error was fixed in the end or not?

[K1sareterrible]

Same problem here in 2021.  Turbotax guidance is very poor on the topic.  In my case "foreign" makes the most sense but the review software keeps flagging it.  Super frustrating.

[jules252-mac-com]

Thank you for your help.  But I don't have a box 16 on my K1 form.  It only goes to 14.  On the form it says K1 (Form 1041).  On the following pages in only has "Other Countries" listed, so I don't know what country or choice to choose from the drop down menu.  Please advise.

Thank you again.