TurboTax software bug - K3 form missing information

Forum|Forum|4 years ago
March 27, 2022
4 replies
17 views

TurboTax only partially created the K-3 electronically for only foreign derived income, not for incomes from all sources. In my case, as a passive investor in a partnership, I have only received US based income and zero foreign income. In the newly incorporated K-3 form, TurboTax does not allow me to enter US income information.

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 list of countries in the pull down list?

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 Column G 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?

Mike9241

Level 15

nothing. the US based income is for reporting by non-resident aliens who file 1040-NR,

second, the IRS has waived most foreign reporting for 2021

Mike9241

Tax2019PayAuthor

Level 6

My K-3 has box 16 checked, in it, it showed only US based income in column (a) and column (g). There is no where in TurboTax where it allows me to enter either US based income or even select US as a country. Even if I choose "not applicable" for country selection since US is not a choice, it still gives error when running review. The only way to do this is to uncheck K-3 box in TurboTax, then it is inconsistent with what is on K-3. This is a bug in TurboTax obviously.

woolleyr

Level 2

I have the same exact problem.

dbrubeck

Level 2

I have the same issue. K1 box 16 checked. K3 has only US source income. TT won't let me specify US on K3 line A for name of country.

gordonwd5

Level 2

I have the same problem as the above about US income.

How am I suppose to enter my K3?

I also have problems with my cost basis.

mschou

Level 2

same here

woolleyr

Level 2

I talked to TurboTax about this. They recommended that I uncheck box 16 on the K-1 if I had no foreign income. I did this and finished my taxes.

Tax2019PayAuthor

Level 6

Isn't that bizarre?! If this is the fix, why can't Turbo Tax insert a sentence in the interview: If you do not have any foreign income in K-1, please uncheck Box 16"?

If the answer you got were from Turbo Tax, then they had put the burden on you. If IRS would have an issue to reconcile your K-3's with what you entered into Turbo Tax, you could not blame Turbo Tax - you have no official record of the conversation with Turbo Tax.

What I do not understand is why Turbo Tax has truncated an official IRS K-3 form? 2021 Schedule K-3 (Form 1065) (irs.gov).

I am still undecided - will wait for a few more days to see if TurboTax finally wakes up to do the right thing to fix the K-3 issue before the tax filing deadline.

taiyed201

Level 2

Was this ever resolved? I am not in this exact situation in for 2023 income. Is the right way to uncheck the box 16?

Update: Answering my own question. Turbotax puts a note:

What if my Schedule K-3 has no foreign income or taxes?

If your Schedule K-3 has no foreign income or taxes on it, you can answer "No" to this question.

srcopeland

Level 2

It's March 2024 and this is still a problem in TurboTax. I've been messing with this for way too long trying to figure out how to enter my K3 info and then whether or not I even need to enter my K3 info since I have no foreign income. Until TurboTax fixes this, I'm unchecking box 16 on my K1 and moving on, I guess.

lemmharris1

Level 3

This year (2023) Turbotax tells you to un-click the box if you have no foreign income. It's hard to see but the note is there as you are going through the steps. Hope this helps!