Help with Entering Schedule K-3 Info from K-1 — Multiple Countries?

[Rockpowwer]

Hi, I'm trying to input data from my Schedule K-3 (attached to my K-1) into TurboTax, and I'm a bit stuck on how to handle the foreign country section.

On the TurboTax screen titled "Enter info from your Schedule K-3", it says:

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

But there's only a single-select dropdown for one country. My K-3 includes three countries, including the US (if that counts), but not all columns (b), (c), (d), and (e) have values for each.

There’s also this note on the screen:

"You must enter separate K-1 worksheets if you have more than one type of foreign gross income in columns (b), (c), (d), and/or (e)."

My questions are:

1. Does that note apply to multiple countries, or only to types of income (columns b–e)?

2. Since I have 3 countries listed (some with no numbers in certain columns), do I need to create multiple K-1 entries in TurboTax?

3. I'm already splitting the K-1 because both box 1 and box 2 are populated—does this mean I now need to create 4 K-1s inside TurboTax for this one paper K-1?

Any guidance would be greatly appreciated! Thank you!

[RobertB4444]

1. Only to types of income.  For the country select "Various".

2. No.

3. No.  Only two K-1s for the income in boxes 1 and 2.  The second K-1 should only have the entry for box 2 in it.  The rest of the numbers should all be entered on the first K-1.

@Rockpowwer 

[Rockpowwer]

Thank you for your reply!

So from the below list of options in the "Foreign Country or U.S. Territory" drop down (that don't seem like country names), the best one for my case is "Various"?:

• (not applicable) – Placeholder, not a country.

• RIC – Refers to Regulated Investment Companies (not a country).

• HTKO – Possibly shorthand or internal code, not a recognized country.

• 965 – Numeric code, not a country.

• 951A – IRS tax code reference, not a country.

• Various – Vague/general, not a specific country.

• XX – Placeholder or unknown, not a country.

• 909 Income – Likely a reference to a tax form or income category, not a country.

Does it mean I need to add up the 3 countries (one being US) into the rest of the turbo tax screens that come after picking Various? Or add up the non-US countries only?

Also, to be sure I don't need multiple K1s / K3s, how to know if i have more than one type of foreign income in columns b, c, d and/or e?

In terms of Box 1 vs Box 2 and what to input in the first ordinary income K1 vs the second rental K2 in turbo tax, it seems, that I always see conflicting information on this. On my separate question here (link), ive explained that I've always tried to attribute rental boxes for one k1 from all the statements vs another. Do you think that was not correct and it is as simple as you mentioned with the second k1 only having box 2? because i have a large grid of entities (where multiple are tagged as Real Estate) under 

grid under STATEMENT A - QBI.

thank you again in advance for you help.

[RobertB4444]

Yes, various covers your issue.

When you're adding together the numbers the total is the row that they are in.  Each type of income is its own row and the countries are the columns.  Just add the rows.

The foreign source income is all that needs to be entered from the K-1.  You don't need to enter the US source income.

The second K-1 only has box 2 filled in as a way to make the computer program process the different types of income correctly.  This is not an IRS rule or anything.  So the only number that needs to be put on that second K-1 is the number from box 2.  It really is that simple.

@Rockpowwer