K-1 with box16 checked and K-3 with multiple countries

[ds--]

Is there any guidance on how to enter K-3 with multiple (3) countries listed in Part II?

thank you

[AliciaP1 · Accepted solution]

You will need to create a new K-1 for each country only if there is more than one type of foreign gross income in columns (b), (c), (d), and/or (e) of the K-3.  If you only have information in 1 column for 3 countries you can list the Foreign Country or U.S. Possession dropdown box as Various.  Then add the amounts for the different countries and enter them as one amount in the appropriate column.  If your K-3 does list amounts in more than one of the columns (b - e), you will need to enter a separate K-1 worksheet for each column.  You can still add the countries together and show the Foreign Country as Various for amounts in the same column.

For example:

Schedule K-3 Line 1 has $5,000 in column b (France) 

Schedule K-3 Line 2 has $2,000 in column b (Germany)

Schedule K-3 Line 3 has $12,000 in column c (France)

                       You will have 2 Schedule K-1s entered into TurboTax to accommodate the different types of foreign income (columns b & c).  One will have the Foreign Country or U.S. Possession dropdown as Various and Foreign branch category income (Column B) box will be $7,000. Then finish entering the K-1 with all the other box information included.

                       Enter a new K-1 with the same company information but no amounts in any box except box 16.  This will have the Foreign Country or U.S. Possession dropdown as France and the Foreign gross income (Column C) box will be $12,000.  Finish entering the K-1 with the remaining information being blank (or No).

[ds--]

very helpful, thank you!

[losthelpmeplease]

I'm confused. I have multiple ROWS of A, B,C (different countries) but MY COLUMNS B TO E all have 0. I do have different numbers in COLUMNS F AND G  for the respective rows. Since the columns b to E do not differ. Does not that mean I DO NOT NEED TO INPUT ANOTHER K1? Please advise. THANK YOU

[PatriciaV]

Column F is not foreign sourced income and column G is the total. As AliciaP1 said above, you only report foreign source income shown in columns B through E. Otherwise, you have nothing to report.

@losthelpmeplease 

[losthelpmeplease]

Thank you so much for the response! Then would it be okay for me to not indicate there's a checked box 16 (the box 16 is checked off on my k-1). Thats where all my confusion starts as the next question on the software tells me to go section 1, line 24, go to a, b, c and enter the foreign country for which are reporting foreign taxes paid -- I literally have all zeros in columns b to e. 

or do i continue by selecting "various" and proceed to insert 0 for b to e , and add up for the sums for f and g?

[BrittanyS]

If you only have information in only column A, this is for US Income.  You can uncheck box 16 and continue without entering the K-3.  If you have income listed in boxes b-e, you can follow the steps provided above, "If your K-3 does list amounts in more than one of the columns (b - e), you will need to enter a separate K-1 worksheet for each column.  You can still add the countries together and show the Foreign Country as Various for amounts in the same column. "

[Edited 04/10/2023| 2:28 pm PST]

@losthelpmeplease 

[losthelpmeplease]

do i also add put the totals for columns f and g?

[PatriciaV]

Since there is no way to directly enter into Columns F & G, and all the reported income is US sourced, you do not need to include anything from Schedule K-3. Uncheck Box 16 so you can e-file your return.

[dval29]

Hello - 

The K-1 I received from my company lists two countries in the K-3 section: China and Korea. 

As instructed, I created a second K-1 in TT for the second country (Korea). When I entered the K-1 information, my tax liability doubled (since I am now reporting two K-1s thus doubling the income). 

So am I supposed to create a "blank" K-1 with the business info bu then list $0 for all the K-1 info, and then *only* record the Korea income in the K-3 portion? 

Sorry, this is all very confusing to me. I really wish I could just uplaod the pdf I was given.