I'm still confused about the Schedule K-3 on TT. Last year there was much discussion about how TT could not yet handle Schedule K-3. Many people decided to uncheck box 16 ( K-3 is attached if checked) so they could e-file their taxes. I was not receiving my K-3 until after the filing deadline so I decided to uncheck the box and file and if necessary I would amend my return after seeing my K-3 months later. When I saw my K-3 there was no indication I had paid any foreign taxes (most likely due to my minuscule percentage of the profits) and I didn't amend my return.
This year TT now asks if box 16 is checked and if you say yes it goes on to have you "enter relevant information from your K-3..... needed for your return". I don't have my 2022 K-3 so I used my 2021 K-1 and K-3 just to see how TT would handle this. For me, most of the items were left blank. TT made no changes to my 1065 K-1 and no new forms were created. I'm wondering about other people's experience when they have a more complicated K-3 with foreign tax implications. Does TT create a K-3 to be e-filed with your return?
You have the option to 1) uncheck box 16, e-file your return now, and amend later if necessary or 2) request an extension of time to file. Any taxes you owe must be paid by the filing deadline, however.
Schedule K-3 is a tracking tool for the IRS that reports foreign income, which is already included in other boxes on the K-1. The calculations on this form can result in deduction limitations. But unless this is a foreign investment with significant foreign activity, whatever information is missing by not having Schedule K-3 should not greatly influence the taxes due on your return. Apparently you discovered this was true last year.
I guess my confusion is that TuboTax doesn't seem to be able to generate a Schedule K-3. It simply asks you questions about the K-3 relevant to your return. So even if you amend or file an extension to enter the K-3 information at a later date there won't be any indication of a K-3 in your return when you file it. My understanding is that the IRS wants you to file Schedule K-3 if it is issued along with (or at a later date) your K-1. Am I just missing something here?
Go to your forms to see if it is there. It is listed as a worksheet rather than a form.
If using Turbo Tax online:
If using the software, go to the forms mode to see if it listed as a K-3Swks under the k-1 entry.
Thanks for your response.
There is a Schedule K-3 worksheet when I request to see my tax return plus government worksheets. I didn't think the worksheets were included when I e-file my return. Are they?