K-1

Forum|Forum|4 years ago
March 10, 2022
2 replies
3 views

I received a K-1 with just a few dollars of income. When I am attempting to submit my return I am receiving 2 error messages. First, on line 16 it states "schedule K-3 is attached if checked" and the box is checked - Message is "schedule K-3 will be available in a future release" - we are talking about less than $10 of income here. Second - line 20Z - Section 199A info has $7 next to it - yet I receive a message "Box 20 Code Z has been selected but no Sec 199A income has been entered on Statement A"

How do I handle these so I can submit ?

TurboTax Home & Biz Windows

PatriciaV

Level 15

Yes, Smart Check will not let you proceed because Schedule K-3 has been delayed in its release. Once the form is ready, you will be able to proceed past this point and e-file your return.

As a work-around, you have the option to e-file your 1040 return now and amend later in the year when the form is available. However, if this income relates to foreign assets, you will need to wait until Schedule K-3 is released and updated in TurboTax.

Otherwise, to allow your 2021 personal tax return to be e-filed without Schedule K-3, return to the Schedule K-1 entry for this investment. Uncheck the box for Box 14 and continue. This change should clear the Federal Review process and allow you to e-file.

Once you receive your refund, or are certain that your return has been accepted and processed by the IRS, you can check for TurboTax updates until Schedule K-3 has been released. At that point, you may amend your return.

Second issue: Certain items (generally labeled "Other") on your K-1 may need to be entered in different places in TurboTax. Consult the instructions that were included with your Schedule K-1. These should tell you the form and line where the amount should be entered.

For Section 199A from Box 20Z, follow these instructions: How do I claim the Qualified Business Income Deduction as a Schedule K-1 Recipient?

More info: How do I amend my 2021 return?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

daddiowen

Level 2

Regarding K-3: The IRS finalized form K-3 in December 2021. It seems like TurboTax engineers need to incorporate that form sooner than later. My friend is more than ready to file, so someone needs to put a fire under the forms folks to get that integrated.

PatriciaV

Level 15

Please note that the issuance of a K2/K3 is not a Turbo Tax issue, it is a IRS issue. Even after the final forms are released, they must be integrated into the software, which does take time. According to the IRS, these are the release dates for these forms, based on type of Business Entity.

Form 1065 March 20, 2022

Form 1120-S Mid-June 2022

Form 8865 January 2023

For more info, see this IRS link.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Warri0r74

Level 2

When will TTax have the software fix so that K-3s are handled correctly and I can file my taxes?

Cynthiad66

Level 14

TurboTax is waiting for the IRS to finalize the forms and release for all taxpayers and Tax software.

Since IRS is not requiring the form for 2021, we suggest that you uncheck the box and file your return. One question, is there anything recorded on the K3 such as a foreign tax credit? If so, you may wish to amend your return once the K3 is available in Turbo Tax to claim the credit.

Most forms K-2 and K-3 forms do not need to be filed this year. The IRS announced on Tuesday February 15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing.

This is an extract of the IRS announcement:

@Warri0r74

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"