I have an LLC and did taxes using TurboTax. It issued me and my wife K-1's that have in Box 20 a code Z and note "STMT." When I do my personal taxes and input this K-1, it asks me to fill out a secondary form, Schedule K-3 Foreign Transactions Smart Worksheet. No matter what I enter, it keeps coming back as an error. When I go to file my personal federal tax return electronically, Turbo Tax won't do it until I fill out the form properly, but nothing works. Can anyone tell me what I am supposed to enter on Line 20 for the Schedule K-3 Foreign Transactions Smart Worksheet, and for the + window that pops up when I try to type in an amount on that line; it asks me for a DESCRIPTION and an AMOUNT?
Just go through the business section again and delete the K1.
I'm assuming you and your wife are the officers of the LLC. You do not need a K1. When using Turbo Tax it is recommended that total expenses for the LLC get entered 50% for you and 50% for your wife. I've used this approach for years with no negative blowbacks. For example, lets say your LLC is "Wife and I painting".
Wife - business painting - 50% expenses from LLC
Yourself - business paint delivery - 50% expenses from LLC
It takes awhile to enter but works very well in the long run
If you did not prepare a k-3 in your return, go to Box 16 in your LLC return When it asks if Box 16 is checked your return (or if you did not receive a K-3), answered no to this question.