I received a Schedule K-1 for an foreign partnership thats within my IRA but Turbotax Online is giving me trouble with it when I get to the state filing section.

[amn0270]

When I fill it out on Federal portion of the income in the S Corps, Partnerships and Trusts and as long as check the option that states "My K-1 indicates its held by your retirement plan" it then says
"Good News! Because this K-1 is held by your retirement plan, you do not need to report any information about this K-1 on your personal tax return. It's sheltered from tax because it's part of your retirement account. We'll remove this K-1 now and then ask if you have any other K-1's to enter."

So all is good and it does not require me to fill out the K-1 other than the partnership address but when I get to my state filing it mentions I have a partnership and asks me to fill out a bunch of entries related to it. If TTO says it removes the K-1 in the earlier scenario why am I being forced to enter all sorts of info about the partnership in my state forms. Many of the questions it asks I cannot even answer since what it asks for is not on the form. Things like when the partnership was created. I need a solution ASAP since it will not let me proceed without this info.

Thanks in advance,

Adam

[Mike9241]

you don't enter anything for the state because it is in an IRA.  delete the state K-1.  i defer on whether you have other POSSIBLE reporting requirements such as FBAR, UBIT, form 8865 

[amn0270]

There is no state K-1 to delete because I have not filled it out. That's the problem. It won't let me proceed thru the remaining state tax filing steps until I fill out all the K-1 fields in the partnership state section. There is no way to bypass the partnership section of the state that I have been able to find. Only option I can think of is to just fill in all the fields with fake information and see if it will allow me to delete the state K-1 form after but I suspect that won't be an option since it appears to link back to federal form which had the option to bypass so long as I check that it was an IRA.

[AliciaP1]

You need to delete the Schedule K-1 altogether.  Since it is only reporting retirement account information, neither the federal return nor the state return needs even the address.

To delete a specific form in TurboTax Online you can follow these steps:

1. Within your return, click on Tax Tools in the black menu on the left side of the screen.
2. Click on Tools.
3. Click on Delete a Form. 
4. Scroll down to your Schedule K-1 Wks and click Delete.
5. Under Federal in the black menu bar click Wages & Income to get back into your tax returns.
6. Proceed entering/reviewing your return.

@amn0270