Question

K-1 Turbotax Entry Question

Forum|Forum|3 years ago
February 25, 2023
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I’m filling out the K-1 section inTurbotax.

I received a Beneficiary K1 trust /beneficiary form. The form shows deductions in 11A, 11B, 11D, and 14B. No other boxes have any values in them (ie, no income, no capital gains). On my 1040, Turbotax gave me a capital gains loss for 11D and a deduction 11B, also a deduction for Foreign tax (in Sched A, line 6).

However, When I answer the Turbotax questions for Box 14. Turbotax asks me to: “Enter the foreign tax information as shown on Box 14”. It then provides data entry fields for foreign tax items such as

"Interest Expense", "Other Deductions: Total", "Other Deductions Foreign, US Total, "Total Applicable Losses."

I don’t have values for all of these fields, and it seems to me that there’s no reason to fill them out because all that’s in Box 14 is a small amount for Foreign Tax. Do I need to enter data for any of the fields?

Turbotax also asks me to enter: “Qualified Business suspended passive loss”. Not sure what tis means. I just left this blank. Do I need to fill out this field?

Thanks

TurboTax Home & Biz Windows

T

ThomasM125

You don't need to enter anything unless those items have been reported to you. The qualifed business loss would only apply if you had business losses reported on your form in the current year or carried over from previous years. They would be reported on line 6 or 7, so since you don't have any entries there, you appear to not have any qualified business losses.

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S

Splash232003Author

Thanks very much for replying. For 14B, I received a Beneficiary Foreign Tax Credit Schedule sheet, which did include some Dividend income. However, the Itemized Deduction figure on this sheet was greater than Dividends; also Line 5 Deduction Total was higher than Dividends. So, I assume there’s no foreign taxable income to add to my 2022 taxes. If there were foreign taxable income, I assume box 14 would have been 14E.

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robynjonh

I am following this thread as I have had a similar issue come up.

I have been receiving a Schedule-K for over 20 years, and I have been doing my own taxes with desktop TT for about 10 of those, I think. This was the first year where my Schedule-K (sent to me by the Trust officers who have tax preparers prepare it for me) reported a foreign dividend income of $206 and apparently foreign tax of $14 (shown on line b of box 14).

Because of this, several other pages have opened up that I have never seen before. After a lot of back and forth with the Trust Officers, who asked their tax preparers, who don't seem to know the right terminology even (they suggested selecting "other country" on a drop-down, and that is not even an option), the main trust officer spoke to a CPA friend of his who gave me these directions:

"1. Various is the right choice for the country
2. She should put the $206 in the "Gross Income Sourced at Beneficiary Level: Foreign Source Income" box
3. Select "passive category" in the next box.
4. Then on the next page or 2 it will ask for the amount of foreign taxes paid and that is where the $14 goes."

So, I followed these directions, but I didn't have a "foreign taxes paid" option, only a "foreign taxes accrued", I put the $14 there.

In the end, it keeps throwing an error message. One of the things it has said has been something about not having more income from foreign than U.S.

But anyway, based on this thread, I am wondering if the $14 would actually be a credit for me that I am willing to forfeit, as it keeps throwing an error? Because no one seems to know what to do with this information, and they are all just shrugging their shoulders and saying "talk to Turbotax". Well, that is easier said than done.

Ps--luckily the account for which this schedule-k comes is nearing its end, and I may not need to deal with these folks anymore. Drives me batty when professionals pass the buck.

please, please help! I am a full-time, non-traditional university student who also works, and I allotted time for this during Spring Break, but here I am still dealing with this a few weeks later when I need to be doing homework--all because of this one issue.

thanks in advance!

Adding to my own reply--

I did what was listed here, in that I added the income numbers from lines 1 and 2a to get my total income. Then subtracted the foreign income number I had been given in order to get my US income amount. Added the Total Income and US income numbers in box 14 where applicable, et voilà(!) no more errors.

Does not incite a lot of confidence in the tax preparers that my Trust account officers used, but at least it seems to be good now.