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Level 4
posted Oct 4, 2025 6:33:01 PM

Form K3 - US vs foreign source interest expense

Hello @Mike9241 and others

 

I have few questions regarding K3 if you don't mind helping me here.

 

Very first part of Interview is asking foreign source in Line 24. Lets assume my K3 looks like this (example)

 

 

Q:   I am assuming I will enter either zero or nothing in first part of K3 interview screen where It is asking me enter column B,C, D, E, F and  G of Line 24 as there is no foreign source income?

 

Now deductions part looks like this

 

 

In next interview it is showing Interest Expense total as 1500 but question is it us source or foreign? Software automatically add it into US source.

 

 

Thanks a lot for your help.

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1 Best answer
Level 15
Oct 4, 2025 9:07:08 PM

if you are a us citizen don't bother entering the k-3 US info and interest is not foreign sourced because that would be in columns b thru e. you'll probably see no K-3 info in the forms required for filing if you do complete it. 

 

if you are filing form 1040NR which Turbotax doesn't do, then the info would be relevant for US income tax purposes. 

1 Replies
Level 15
Oct 4, 2025 9:07:08 PM

if you are a us citizen don't bother entering the k-3 US info and interest is not foreign sourced because that would be in columns b thru e. you'll probably see no K-3 info in the forms required for filing if you do complete it. 

 

if you are filing form 1040NR which Turbotax doesn't do, then the info would be relevant for US income tax purposes.