Form 1065 Schedule K-3 Line 24 how to enter US income but turbotax don't have option to select US as country

[Gagan1]

I am using Turbotax Home and Business 2022 

I am entering my K1 ( Form 1065) information and as part of that Turbotax asks to enter Schedule K-3 information. 

Enter info from your Schedule K3

On your Schedule K-3, go to Part II, Section 1, Line 24, go to lines A, B, and C and enter the foreign country for which you are reporting foreign taxes paid or accrued. 

Foreign Country or U.S. Possession

It got a pulldown of countries you are supposed to choose. However, there is NO option to select US

My K-3 Part II, Section 1, Line 24 line A only has US based income but the above pulldown doesn't have the option to select US even though it says "Foreign Country or U.S Possession". How am I supposed to enter this information in Turbotax?

[Mike9241]

if there is nothing on line 21 of the k-1 and that should be the case since it seems all income is US sourced income there is no k-3 reporting so uncheck box 16. put another way you can't report US sourced income (column A) in Turbotax. 

[GaryRo]

Have exactly the same problem, will call the Partnership to ask why they provide K-3 if all entries are in the U.S. Possession column.

At the same time, it looks like TurboTax should have the U.S. possession in the drop-down box if IRS requires companies to provide K-3 even if they do not have foreign business and then skip the rest of it.

[GaryRo]

Got response from the Partnership:

"The additional disclosures are now required by the IRS when the partnership has a foreign Investor.  ".

Since they don't know who is a foreign Investor, they send K-3 it to everyone.  I guess TurboTax software need to fixed to be able to handle it

[LindaS5247]

If you have no other foreign income or foreign tax credits to report on your return you do not have to include the K-3. Keep it with your tax records.

[dutang123]

I have the same question like you. did you get answer?

Thanks!

[BrittanyS]

If you only have US Income listed you just need to uncheck box 16 and do not enter the K-3.  The K-3 is used to report foreign income.  If you know you will not receive foreign income or do not feel the K-3 applies to you then you can uncheck box 16.  However, if you receive a K-3 at a later date with foreign income you will need to amend your return to include the income.  If you will be receiving the K-3 with foreign income, you should file for an extension and file the return once the K-3 is received.  Keep in mind that an extension gives additional time to file but not to pay your taxes.  If you know a balance will be due, you will need to make an estimated payment to cover the tax to avoid any penalties for not pre-paying tax.

@dutang123 

[Gagan1]

Foreign income from the source that issued the K1 or ANY foreign income? If you have foreign income or foreign tax credit from a mutual fund, do you need to report K-3 which is part of K1 from this source? If yes, TurboTax does not allow me to enter K3 info with U.S. based income. 

[rzman21]

Yikes! This is still confusing to me.

It does not feel right to just uncheck the box asking if a K-3 is attached (when it is attached).

Like the others in this thread, my K-1/K-3s show zero foreign income, zero foreign tax, etc. But if I fill out the TT questions with zeros or blanks, it returns Smart Check errors.

And I do have foreign income/tax in mutual funds (not K-1 stuff). So the info from another answer (LindaS5247 Employee Tax Expert and EA "If you have no other foreign income or foreign tax credits to report on your return you do not have to include the K-3"-- is confusing. 

[Randy4-27-50]

Once you check the box you can not uncheck it in turbo tax software even if you want to. Accountants this year are checking box on item 16 whether there is foreign tax or not!

[Randy4-27-50]

How do I uncheck 16 if I want to go that route? I checked mine and it won't uncheck! I did get a K-3 but only U.S. income.

[rzman21]

There are 2 locations to uncheck the K-1 Line 16 box (that indicates an attached K-3). The first is in the TT software as you go through line-by-line. This is where sometimes it will not allow you to uncheck it.

The second location is in "Check this Entry". Access this by running "Smart Check". If you have Box 16 checked, but have zeros or blank cells (because all income/tax is U.S.-based) it will return an error, and launch "Check This Entry." In that screen there is a "Box 16 checkbox" shown. You can uncheck it here. Then hit "Continue" at the bottom.

[Randy4-27-50]

Thanks for the info. I decided to go to Forms Mode and delete the Red X at Line 16 Box. It worked, Hooray!! K-1/K-3 can be such a challenge especially if you are not supplied all the info from your Partnership.

[tiemle]

I deleted the check mark when i went to the form mode.  However, when you get back to the step by step, it's still there.  I went to the smart check and it's still there?   so frustrating.