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Level 6

Question

TurboTax Newly added K-3 has a bug - need fixing

Forum|Forum|4 years ago
March 25, 2022
72 replies
388 views

TurboTax updated with K-3; however the TurboTax K-3 has a bug as it does not include the selection of country for US. Our K-3 forms shows US amount in column (a) and column (g). How do we enter? Will TurboTax fix this bug?

PatriciaV

Level 15

In the interview section for Schedule K-3, TurboTax is asking for the foreign country for which you are reporting foreign activities. The detail questions have boxes for columns B-G only, but not column A (US-sourced). Do you receive an error if you do not enter anything for column A?

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Tax2019PayAuthor

Level 6

Thanks PatriciaV. I think TurboTax only partially created the K-3 electronically for only foreign derived income, not for all incomes. In my case, as a passive investor in a partnership, I have only received US based income and zero foreign income. K-3 is for all income, including US source income.

Here are some issues:

TurboTax interview asked Foreign Country or US Possession, what do I select? Do I select "not applicable" since US is not among the choice? Alternatively TurboTax in K-3 should have two entries for Box16 - if Box 16 in K-1 is checked with foreign income, OR if Box 16 in K-1 is checked with only US income; if you select the former, you continue to fill out the K-3 in TurboTax, and if you select the latter, you stop. That would be a fix to the bug.

When prompted to Enter gross income information, there is no Column A box for US income, but there is a Column G total for "Foreign Gross Income - Gross Income from all sources", should I enter US total in this column or leave it blank?

If I cannot enter US or any US source income in TurboTax version of K-3, then what do I do?

Another fix for the TurboTax bug is to add US as a choice in country selection and also add Box (a) for US income source in each column. This will be consistent with the IRS form K-3. Thus I think that it is a bug in TurboTax software.

If you have other creative fix, please advice and think many will benefit from the expert guidance. Appreciate very much.

Tax2019PayAuthor

Level 6

When I select "not applicable" when the interview question asks about foreign country or US possession, it still gives me error. There is no where in K-3 in TurboTax you can indicate that although K-3 box is checked, I had only US based income/loss. Thus this has to be a bug.

Joan60

Level 2

Thank you for asking this question. I am having the same issue. My K-3 shows gross rental real estate income from the U.S. only. No foreign income. What is reported on the K-3 as a net income (loss) has already been reported on the K-1 Box 2 in the same amount as a net rental real estate income (loss). Does this mean that the U.S. amount that should be reported on the K-3 has already been reported on the K-1?

Gene357

Level 2

I'm having the same issues as others. My K-3 only has US sourced income and TurboTax does not allow me to enter US. It seems a simple fix, just add US to the pull-down list, otherwise I cannot enter my K-3 and am stuck.

I spent 2 hours on a tech support call who finally suggested I lie about box 16 on my K-1 to avoid entering my K-3 altogether, but that seems poor and possibly illegal advice...to lie on a government form?

Please, just add US to the list of possible entries on the Interview form...

Gene357

Level 2

@PatriciaV Can you give us any update on TurboTax intentions to fix the above mentioned bugs and inconsistencies in the new K-3 form? And when?

I would have PMd you, but apparently we are not allowed to PM TurboTax employees...

Tony007

Level 2

Has anyone come up with a work around to get these forms filed? Seems Turbotax isn't going to fix it, so a work around would be nice.

wolf109

Level 3

I have a relevant question. TurboTax is asking to select a Country on line 24 Section 1 Schedule K-3.

How do I enter several countries there? I have 3 lines (A, B, C) with 3 different country codes on my Schedule K-3. All of them report only one type of income (passive category income column (c) ).

Should I simply sum the numbers and select 'not applicable' in the Country selection?

rv2

Level 3

Since you have a summary row in line 24 - you can select Various as the Country.

dhiman halder

Level 2

I have the same question- the descriptions are not clear, does a dash means a minus or is just a separator.

Gene357

Level 2

A year later and TurboTax 2022 still has this bug as well as others in 1065 K-3. There is no US Entity to select AND there does not seem to be an easy way to enter multiple Entities.

US is a valid entry and is apparently needed for some customers in complicated tax situations. This is on a valid K-3 for the second year in a row and no meaningful response from TT last year...not holding my breath this year.

If TurboTax had an actual issue tracking system, I would maintain the issue is still unresolved and in need of Developer attention.

ambellnj

Level 2

I am trying to enter the Schedule K-3 information for my client. There is no place to input the US; just various. Also, there is no place to input the total income from column g for the income or deductions. How do I do this? This is awful that TT knew about this since last year and still haven't fixed it. This is frustrating and will now have to start all over using a different platform, since TT cannot find a work around. Any guidance would be appreciated.