I can't seem to figure out how to fix the statement "Sch K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information worksheet line 1." I've got a CPA that did my taxes for my LLC and I had various countries with B, C, P for Block 16. I put these in last year and it worked fine, but this year, I won't let me file. I've done separate K-1s for each country, but still won't work. Any ideas?
I recommend going back through the interview in the K-1 section.
You refer to code listing D for Box 16, but that code is reserved.
Be sure you are capturing the correct type of income category
Next, verify your Form 1116 is completed in TurboTax. Go to the search bar and enter foreign tax credit. Click the Jump to link. Complete the interview questions for Foreign Tax. Credits are always better than deductions.
Click the resources below for more information
2019 IRS Form 1065 Instructions beginning on page 41 for Box 16 Code #-H
2019 IRS Publication 514 Foreign Tax Credit for Individuals
[Edited 3/17/2020 | 9:17 AM PST]
I recommend going back through the interview in the K-1 section.
You refer to code listing D for Box 16, but that code is reserved.
Be sure you are capturing the correct type of income category
Next, verify your Form 1116 is completed in TurboTax. Go to the search bar and enter foreign tax credit. Click the Jump to link. Complete the interview questions for Foreign Tax. Credits are always better than deductions.
Click the resources below for more information
2019 IRS Form 1065 Instructions beginning on page 41 for Box 16 Code #-H
2019 IRS Publication 514 Foreign Tax Credit for Individuals
[Edited 3/17/2020 | 9:17 AM PST]
Yes. Try filling in foreign tax income on Form 1116 as -0-.
Please use the jump to wording: foreign tax credit to go to this entry in TurboTax.
Form 1065 Schedule K-1 Box 16, codes B through R involve Form 1116 for reporting foreign tax paid, so it likely has to do with Form 1116.
Since it is -0-, this is another option:
Thank you! No errors now. What I did: Could not delete the zero in the worksheet, so went back to the Step-by-Step. Took out code C. Then added it and left item 16 C blank instead of zero. When asked for a number, I put the zero back in. Now I have no errors.
I don't understand why this didn't work before since I have the exact same information as previously. However, for some reason, redoing that box (16 C ) corrected the error.
I have spent hours doing & redoing this K-1 and am relieved to have it resolved. Thank you again!
You're welcome~I appreciate you sharing your solution with the additional details in Box 16 and for TurboTax Desktop. Thank you for your perseverance!
Kathyrn:
I have a similar issue.
I have checked that TT has everything entered exactly as on the K-1. But,
- The Box 13 Code H, for Invst Inter Exp, is being placed by TT on Sch A. This Ptn is a business trading securities and the Invst Inter Exp should go from From 4952 to Sch E.
- The Box 12 Code W for other deductions is not going anywhere in TT.
When I correct these manually to be proper, I am then blocked form efiling my Fed and NYS returns. I cannot figure out how to overcome TT's issue. Or how else to enable me to efile.
Thx,
Steve
It depends on the rest of your details whether an override is necessary. If the details provide an adequate explanation, and you have entered the details in the input screens as received, you can proceed to e-filing.
Box 13 Code H is for investment interest expense. It could be included on Schedule E with Form 4951 if you meet the requirements to file.
2019 Form 4952 Instruction page 3:
If you are an individual, estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.
Exception. You don’t have to file Form 4952 if all of the following apply.
• Your investment income from interest and ordinary dividends minus any qualified dividends is more than your investment interest expense.
• You don’t have any other deductible investment expenses.
• You don’t have any carryover of disallowed investment interest expense from 2018.
Box 12 Code W for other deductions: See 2019 Form 1065 Schedule K-1 Instructions, page 12, column 3 for more details. Depending on the type of other deductions, which is should be described in a statement that came with your Schedule K-1, you can trace the taxability of the amount on your return.
Hi,
I am getting this same error, but I have a different scenario. The partnership's foreign tax credit is from a mutual fund; however, this mutual fund does not report any foreign income - just ordinary and qualified dividends. (It is an international stock fund, but has some US investments as well). In years' past, I have just entered the dividends from this mutual fund in box 6 of the partnership's Schedule K and the foreign taxes in box 16p. There are no other entries in box 16 on the schedule K. I've been submitting my taxes this way for years and this is the first time I've had any issues. This year I am getting this error and cannot submit my taxes. Can you help?
Yes. While it is preferred usually to leave cells blank that do not require input, if you are still getting an error, then there is no choice but to answer the question with a zero. I recommend two steps to address getting an error for foreign tax paid.
Step 1: To assure the program is using up to date details, follow these steps, assuming your device meets system requirements:
Step 2: Enter -0- for the amount of foreign income and foreign tax paid using @carolyn0129's approach:
Thank you @KathrynG3! With one slight change to your recommendation, it worked!
I am using TT desktop. I tried making a blank entry for 16c, then updating it to -0- during the check, but that did not work for me. Instead of entering a blank value for 16c, I had to enter a blank value in 16f. Then when I ran the check, I changed the value to from a blank value to a -0-. After that the check passed and I was able to submit my return.
Thanks,
Chris
You're welcome~thank you for the feedback on the other code, too. Interesting!
I am experiencing a similar issue. The error code preventing me from filing my return is "Fgn Tax Code Ln2 col 3 is listed but no foreign source income at individual level has been listed on the K-1 additional information worksheet line 1" related to foreign (Canadian) interest expense allocated at the partner level. I have confirmed with the CPA's preparing the K-1's that the information is accurate. None of the drop down options offered on that line are appropriate. Help please?
I am also experiencing something similar. 16 I is 0 but it is making me refill it as 0 but then not accepting it. I do have other 16 categories on my K-1.
Go back to the K-1 interview and cycle thru until you reach the box 16 drop down box with the entries.
To delete 16 I, put the pointer on the amount and delete it. Then put the pointer on the descriptor to the left and click on it. The drop down menu will appear. Scroll up to the top where it is blank and click on it. That will delete the descriptor. Both the amount and the descriptor must be deleted to clear the error.
Below is the screen that appears after the "Enter Box 16 Info." Note that you can have either foreign or U.S. interest expense or both but there has to be a corresponding income to match. If in your case you only have foreign interest expense, then insert foreign income that is at least equal to the expense.
I have this message "schedule_wks k-1 trust this form cannot be filed at this time you must obtain an update...."
I know this is an error; I got this form straight from my advisor. My software is up to date and I have been updating it every day now for a week. I am going to wait till Friday and then I am going to file regardless. Intuit if you are reading this. Please delete this superfluous error message or "update" the correct from. Thank you
You will still have to wait a little while if you want to file electronically. Trust K-1's are not available yet in TurboTax.
For the most up to date list, check forms availability here: IRS forms availability table for TurboTax individual (personal) tax products.
For more details about entering a K-1 in TurboTax, see: Where do I enter a K-1 that I received?
Thank you that like telling when when it would be available was very helpful. I was getting all kinds of contradictory info that the K-1 was available, or that it was a computer glitch etc. That link was wonderfull. I owe you a box of chocolates !
Do I still need to wait to efile a return with a K1 or should this be working now? I'm unable to file due to an error, so it seems like the feature is available now but something is wrong. (?)
I'm getting the same error from the start of this thread. "Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H for foreign sourced income at the individual level on the K-1 Additional Information worksheet line 1."
On my K1 I received, I have the foreign income coded as B "Gross income from all sources" and I have info for code P "Total foreign taxes paid." It sounds like Turbo Tax doesn't think Box B is a valid way to code the foreign income this year because the description doesn't explicitly say "foreign", but Box 16 is the foreign transactions, so it would seem all the codes for Box 16 would related to foreign income.
I had the same two codes combo (B & P), same descriptions last year and it filed fine so it seems like a bug in TurboTax last year or this year, but not sure where to go to find answers.
Anyone else having issues with this? Did the rules on this change from 2019 to 2020?
1. No, the Trust K-1's are available now. But, this appears to not be a Trust K-1, since foreign income is reported in Box 14 for a Trust K-1, but Box 16 for a Partnership. See this list for the most recent updates: TurboTax IRS Forms Availability.
2. The program is looking for more information about the foreign income. Going back through the original entry may be useful.
At Enter Box 16 Info, above the box for Enter Other Codes where Code B and P are entered, there is another entry for Box 16a - Foreign Country or U.S. Possession. This should be completed.
Secondly, if you are only reporting the earned income from this activity and foreign tax paid for a foreign tax credit, answer No to the question following Box 16, regarding claiming both the foreign earned income exclusion and the foreign tax credit.
If you are using TurboTax CD/Download, go to Forms Mode to open this worksheet.
There are not significant changes to the rules from 2019 to 2020.
Thanks @KathrynG3 . I checked all those fields in the form for box 16 (i.e. 16a and both the codes for B&P) and they looked the same as they do on the form from 2019, so I ended up deleting the whole K1 and re-entered it and that seemed to fix it. I was able to submit after that. You must be right, there must have been some other field that was a conflict and the error check was just flagging on the field that was right. Thanks for your help! I'm unblocked now. 🙂
I also had issues with this Box 16 and others. I did what you said, deleted the K-1 and re-entered it again. Had the same issues with return again, but this time it was asking for information for a Schedule E. I switched to forms mode, looked at the Sched. E, there was nothing on it, deleted the form and that seemed to clear up my problem and I was able to E-file with no errors. Very frustrating and I'm not entirely confident the return is correct.