US Treasury Int reported on K-1

[TD2023]

I am using TurboTax Business for a Trust tax return. I entered US Treasury Int (Box 3) in TurboTax step by step. However, the K-1 does not state US Treasury Int anywhere including Box 14 Other Information. I can't believe the tax preparer needs to separately provide this information to a beneficiary.  A post in another thread stated that US Treasury Int was included in a received K-1 (https://ttlc.intuit.com/community/taxes/discussion/us-bond-interest-on-schedule-k-1-1041-federal-and...) Is there a way that  US Treasury Int is reported on the K-1 in TurboTax Business? Thanks.

[SantinoD]

US Treasury Interest is exempt from State and Local income taxes. Double-check that you are not looking at the State K-1.

Yes, US treasury Interest is taxable on the federal side, so you should see it on the Federal K-1

[TD20231]

SantinoD, I do not understand your reply. as follows:

SantinoD: US Treasury Interest is exempt from State and Local income taxes. 

TD: I know

SantinoD: Double-check that you are not looking at the State K-1.

TD: There is no state K-1.

SantinoD: Yes, US treasury Interest is taxable on the federal side, so you should see it on the Federal K-1

TD: I agree. However, I would think the Trust Federal 1041 K-1 should state its Treasury interest in section 14 Other Information. The Federal 1099 states its Interest on US Savings Bonds and Treasury Obligations. (Box3).

[Anonymous_]

---

@TD20231 wrote:

TD: There is no state K-1.

---

The state K-1 is where you would report US Treasury interest.

The federal K-1 (1041) does not contain an entry for US Treasury interest because the interest is not federally tax-exempt. 

[ThomasM125]

I agree that the K-1 schedule should make reference to the interest income being from US obligations, since it has special treatment on your state tax return. You can contact the issuer of the schedule, but mostly likely they won't be willing to correct it. You need to enter the income as interest from US obligations in order to get the correct treatment on your tax return.

[Anonymous_]

---

@ThomasM125 wrote:

You can contact the issuer of the schedule....

---

The original poster (who I suspect is the same as @TD20231) is the issue of the schedule, but it trying, apparently, to provide information concerning the amount of US Treasury interest to the beneficiaries on their K-1s (or a statement).

[Anonymous_ · Accepted solution]

@TD2023 @TD20231 

Note that you can enter the amount of US Treasury interest on your K-1s in TurboTax Business by entering Forms Mode and inputting a Z code with a corresponding notation.

[TD2023]

tagteam, thank you very much. That was the solution. Have a great weekend.

Yes, TD2023 and TD20231 are the same. I seem to have some technical difficulties with the login.

[mlpinvestor]

@Anonymous_ @ThomasM125  I'm having this same exact issue, but Turbotax Business isn't letting me type in the explanation statement box as shown.  It's non-editable.  How do you solve this?  Thanks.

[Anonymous_]

@mlpinvestor 

Use the K-1 Worksheet, not the actual K-1.

[mlpinvestor]

@Anonymous_ Thanks!  That worked.

One other thing.  I have summary entries for 1099B transactions, and Turbotax says I should send in my 1099B with my return for the details.  But there's no way in Turbotax to attach it for e-filing.  In another thread, someone said they just use acrobat to attach it to the Form 8453-FE that you sign and scan and send in with the e-filed return.  Sounds like a pretty backdoor method, but would be more convenient for sure if the IRS would be okay with it.  Does that work?  Or should I just print it all out and send them a book, basically?

[Anonymous_]

@mlpinvestor 

I'd recommend just printing and mailing the return. I suggested the method you mentioned (initially) but I really don't believe it will get to the IRS; the attachment process appears to be strictly for the transmittal (8453-FE).

Note that if all of the transactions on the 1099-B are covered, you really do not need to send in your 1099-B at all (the IRS will request it after you e-file if they need it for some reason).

[mlpinvestor]

@Anonymous_ Thanks, I'll just do that.  Do I have to send in the entire thing, though?  Half of the length is just "Details for Dividends and Distributions."

Maybe you could help out with a question I posted elsewhere, too?  No one seems to have noticed it yet.

https://ttlc.intuit.com/community/taxes/discussion/unsure-about-net-investment-income-adjustments-in...

[Anonymous_]

The figure on Line 14H gets transferred to the beneficiary's Form 8960 (if needed).

See https://accountants.intuit.com/support/en-us/help-article/schedule-k-1/form-1041-schedule-k-1-box-14...

[Anonymous_]

You'll get varying responses but I'd send in the entire 1099-B since the pages are almost certainly numbered.