Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

I can't seem to figure out how to fix the statement "Sch K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information worksheet line 1." I've got a CPA that did my taxes for my LLC and I had various countries with B, C, P for Block 16. I put these in last year and it worked fine, but this year, I won't let me file. I've done separate K-1s for each country, but still won't work. Any ideas?

posted

Connect with an expert

1 Best answer

Accepted Solutions

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

I recommend going back through the interview in the K-1 section.

You refer to code listing D for Box 16, but that code is reserved.

Be sure you are capturing the correct type of income category

Next, verify your Form 1116 is completed in TurboTax. Go to the search bar and enter foreign tax credit. Click the Jump to link. Complete the interview questions for Foreign Tax. Credits are always better than deductions.

Click the resources below for more information

2019 Form 1065 Schedule K-1

2019 IRS Form 1065 Instructions beginning on page 41 for Box 16 Code #-H

2019 IRS Publication 514 Foreign Tax Credit for Individuals

[Edited 3/17/2020 | 9:17 AM PST]

View solution in original post

39 Replies

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

I recommend going back through the interview in the K-1 section.

You refer to code listing D for Box 16, but that code is reserved.

Be sure you are capturing the correct type of income category

Next, verify your Form 1116 is completed in TurboTax. Go to the search bar and enter foreign tax credit. Click the Jump to link. Complete the interview questions for Foreign Tax. Credits are always better than deductions.

Click the resources below for more information

2019 Form 1065 Schedule K-1

2019 IRS Form 1065 Instructions beginning on page 41 for Box 16 Code #-H

2019 IRS Publication 514 Foreign Tax Credit for Individuals

[Edited 3/17/2020 | 9:17 AM PST]

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Got it, thank you. I had to update my 1116.

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Great! You're welcome. We are happy to help.

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

I have a similar issue and am hoping you can help!

Form 1065 finds an error on Box 16 Foreign Transactions Code H (not used on my K-1) for line 2: Interest expense allocated at partner level. This is zero (as shown on my K-1 Box 16 Code I) but TurboTax says this is an error. If I take out the zero, it puts it back, still showing an error. I have the latest update but can't file.

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Yes. Try filling in foreign tax income on Form 1116 as -0-.

Please use the jump to wording: foreign tax credit to go to this entry in TurboTax.

Form 1065 Schedule K-1 Box 16, codes B through R involve Form 1116 for reporting foreign tax paid, so it likely has to do with Form 1116.

Since it is -0-, this is another option:

From the left menu, select Tax Tools
Tools
Delete a Form
Scroll to Form 1116 and delete, confirm the deletion
Return to your Partnership K-1 and go back through the interview. If it will not let you permanently remove the zero, then you have two options:
- Option 1: Un-check the Box 16 entry if the only thing in this section is -0- with Code I
  - From the left menu, select Federal
  - Wages & Income> Scroll down to Schedule K-1 and click Edit/Add
  - Click Update next to Partnership/LLCs (Form 1065)
  - Click the pencil icon to edit the K-1
  - Go through the interview again until you get to Check Boxes That Have an Amount
    - Un-check Box 16
    - If you have other details in Box 16, then
      - go to the Enter Box 16 Info
      - where Code I is entered, click the drop down arrow and scroll up to make that entry blank
      - delete the -0- by highlighting the cell and clicking delete several times
- Option 2: Delete and re-add the entire Schedule K-1
  - From the left menu, select Federal
  - Wages & Income> Scroll down to Schedule K-1 and click Edit/Add
  - Click Update next to Partnership/LLCs (Form 1065)
  - Click the trash can icon next to the K-1 on the Partnership/LLC K-1 Summary Page

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Thank you! No errors now. What I did: Could not delete the zero in the worksheet, so went back to the Step-by-Step. Took out code C. Then added it and left item 16 C blank instead of zero. When asked for a number, I put the zero back in. Now I have no errors.
I don't understand why this didn't work before since I have the exact same information as previously. However, for some reason, redoing that box (16 C ) corrected the error.

I have spent hours doing & redoing this K-1 and am relieved to have it resolved. Thank you again!

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

You're welcome~I appreciate you sharing your solution with the additional details in Box 16 and for TurboTax Desktop. Thank you for your perseverance!

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Kathyrn:

I have a similar issue.

I have checked that TT has everything entered exactly as on the K-1. But,

- The Box 13 Code H, for Invst Inter Exp, is being placed by TT on Sch A. This Ptn is a business trading securities and the Invst Inter Exp should go from From 4952 to Sch E.

- The Box 12 Code W for other deductions is not going anywhere in TT.

When I correct these manually to be proper, I am then blocked form efiling my Fed and NYS returns. I cannot figure out how to overcome TT's issue. Or how else to enable me to efile.

Thx,

Steve

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

It depends on the rest of your details whether an override is necessary. If the details provide an adequate explanation, and you have entered the details in the input screens as received, you can proceed to e-filing.

Box 13 Code H is for investment interest expense. It could be included on Schedule E with Form 4951 if you meet the requirements to file.

2019 Form 4952 Instruction page 3:

If you are an individual, estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.

Exception. You don’t have to file Form 4952 if all of the following apply.

• Your investment income from interest and ordinary dividends minus any qualified dividends is more than your investment interest expense.

• You don’t have any other deductible investment expenses.

• You don’t have any carryover of disallowed investment interest expense from 2018.

Box 12 Code W for other deductions: See 2019 Form 1065 Schedule K-1 Instructions, page 12, column 3 for more details. Depending on the type of other deductions, which is should be described in a statement that came with your Schedule K-1, you can trace the taxability of the amount on your return.

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Hi,

I am getting this same error, but I have a different scenario. The partnership's foreign tax credit is from a mutual fund; however, this mutual fund does not report any foreign income - just ordinary and qualified dividends. (It is an international stock fund, but has some US investments as well). In years' past, I have just entered the dividends from this mutual fund in box 6 of the partnership's Schedule K and the foreign taxes in box 16p. There are no other entries in box 16 on the schedule K. I've been submitting my taxes this way for years and this is the first time I've had any issues. This year I am getting this error and cannot submit my taxes. Can you help?

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Yes. While it is preferred usually to leave cells blank that do not require input, if you are still getting an error, then there is no choice but to answer the question with a zero. I recommend two steps to address getting an error for foreign tax paid.

Step 1: To assure the program is using up to date details, follow these steps, assuming your device meets system requirements:

For TurboTax Online:
- Sign out of TurboTax
- Completely close the browser window
- Wait a few minutes
- Open a new, incognito Chrome browser
- Sign in to TurboTax
- Run the Review
- Proceed to Step 2 if an error is still generated
For TurboTax CD/Download:
- Go to the Main Menu and depending on the version you have, check under Online or Help to find Check for Updates
- Click OK for TurboTax needs to save your tax return before checking for updates
- Click OK when the window pops Your software is up to date
- Run the Review
- Proceed to Step 2 if an error is still generated

Step 2: Enter -0- for the amount of foreign income and foreign tax paid using @carolyn0129's approach:

For TurboTax Online:
- From the left menu, select Federal
- Scroll down to Schedule K-1 and click Edit/Add
- Update your Schedule K-1
- On the Partnership/LLC K-1 Summary, click Edit
- Answer all the prompts until you get to Check Boxes That Have an Amount and click Box 16
  - Box 16a enter Various from the drop down menu (toward the very top of the list)
  - Select C from the Drop down menu
  - Continue through the rest of the interview until Done
- Run the review again and enter -0- if the error is still generating
For TurboTax CD/Download:
- From the Personal Tab> Personal Income, scroll down to Business Investment and Estate/Trust Income
- Schedule K-1 click Update
- Click yes to Did you receive any Schedules K-1?
- If you have not clicked box 16, click it now
  - Box 16a enter Various from the drop down menu (toward the very top of the list)
  - Select C from the Drop down menu
  - Continue through the rest of the interview until Done
- Run the review again and enter -0- if the error is still generating

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

Thank you @KathrynG3! With one slight change to your recommendation, it worked!

I am using TT desktop. I tried making a blank entry for 16c, then updating it to -0- during the check, but that did not work for me. Instead of entering a blank value for 16c, I had to enter a blank value in 16f. Then when I ran the check, I changed the value to from a blank value to a -0-. After that the check passed and I was able to submit my return.

Thanks,

Chris

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

You're welcome~thank you for the feedback on the other code, too. Interesting!

Can't file due to this: K-1 Wks-Partnerships (xxx LLC): Box 16 Description has been entered for foreign tax paid or accrued but no entry has been made for codes D-H or for foreign sourced income at the individual level on the K-1 Additional Information w

I am experiencing a similar issue. The error code preventing me from filing my return is "Fgn Tax Code Ln2 col 3 is listed but no foreign source income at individual level has been listed on the K-1 additional information worksheet line 1" related to foreign (Canadian) interest expense allocated at the partner level. I have confirmed with the CPA's preparing the K-1's that the information is accurate. None of the drop down options offered on that line are appropriate. Help please?

Still have questions?

Questions are answered within a few hours on average.

Post a Question

*Must create login to post