K-1 (1120S) K-3 with only US source income

[jmwright1058]

I'm using TurboTax Premier for tax year 2021 (download version)

I have a K-1 (1120S) with Part III box 14 checked.

TurboTax says 'Enter info from your Schedule K-3'

     Foreign Country or U.S. possession

         I entered (not applicable), then clicked 'Continue'

TurboTax says 'Enter Gross income information'

    It has boxes for:

        Foreign branch category (Column B)

        Foreign Gross income - Passive category (Column C)

        Foreign Gross income - General category (Column D)

        Foreign Gross income - Other category (Column E)

        Foreign Gross income - Gross income sourced at partner level (Column F)

        Foreign Gross income - Gross income from all other sources (Column G)

But, it does not have a box for U.S. source (column A)

1st page on my K-3

    E     Check to indicate the parts of Schedule K-3 that apply.

                The only box that is checked is 2

                1 and 3-7 are not checked

My K-3 only has values in 1A (Sales US) column A (U.S. source) and column G (Total).

    There are no values entered in Columns B, C, D, E and F.

My K-3 has no values entered in Rows 2-23

My K-3 only has values in 24A (Total gross income) column A (U.S. source) and column G (Total)

My K-3 only has values in 25 (Expense allocable to sales income) column A (U.S. source) and column G (Total)

    There are no values entered in Columns B, C, D, E, and F

My K-3 has no values entered in Rows 26-53

My K-3 only has values in 54 (Total Deductions) column A (U.S. source) and column G (Total)

    There are no values entered in Columns B, C, D, E, and F

My K-3 only has values in 55 (Net income loss) column A (U.S. source) and column G (Total)

    There are no values entered in Columns B, C, D, E, and F

Why does TurboTax not ask for the U.S. source income?

Is TurboTax not able to deal with this situation (only income from U.S. source)?

Was my K-3 filled out incorrectly by the company that sent it to me?

Was Box 14 on K-1 checked by mistake?

Regards,

John

[Mike9241]

actually it's a case of the S-corp sending you a K-3 for which nothing has to be entered on your return if you are a US citizen. 

most tax programs do allocations regardless of whether there is any need to include that info on your return.

two of the most common items this tax year are k-3s with no foreign tax credit and only US source income and the other is Unrelated Business Taxable Income or UBIT which only needs to be reported by tax-exempt entities like charities and retirement plans.

here' 's a memo from a partnership. the same applies to S-corp shareholders

Beginning in tax year 2021, the Partnership will report items of international tax relevance to our partners on new Schedule K-3. As we disclose .... all of our income is effectively connected with a United States trade or business. However, a limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. 
Notwithstanding the aforementioned, to the extent our Schedule K-3 is applicable to your return filing needs, we encourage you to review the information contained on this form when available and refer to the appropriate federal laws and guidance or consult with your tax advisor.

[ANDY012408]

i have the same issue. did you be able to find a solution yet? 

[jmwright1058]

Yes. I did find a resolution.

In my original post I said "Was Box 14 on K-1 checked by mistake?"

Though nobody answered this...I assumed the answer was yes (the box was checked by mistake).

Since the 'US' income I had to report was really zero, then box 14 should not have been checked.

Hope this helps!

John