Question

K-3 US income only

Forum|Forum|2 years ago
February 23, 2024
1 reply
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As with last year, Turbotax for 2023 just added the necessary forms for K-1 recipients and still does not have the United States as part of the drop down menu as part of entering a K-3 that has no foreign income (only US income).

K-3s are required to be issued even if US only income. Will Turbotax be adding the United States to the dropdown menu? If not how are we to proceed?

Thank you

DaveF1006

Some firms indiscriminately issue K-3's to partners thinking it's a requirement to issue even though no foreign income is distributed to a partner. The IRS states that if there is a Domestic Filing Exception for filing K-2 or K-3, these forms do not need to be issued. Please read this for more details and look under Domestic Filing Exception.

If you are certain that all of your income is US -based, you do not need to file a K-3. This is why there is no drop-down that includes the US.

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L

lemmharris1Author

A K-3 was issued along with the K-1 and has been filed by the businesses' accountant. According to the firm, our S-Corp was required to file K-3 even though all income was in the US. That being said, some similar questions in the Discussions have been responded to by saying to simply un-click box 16 in Turbotax to move forward since there is no US in the drop down menu. If a K-3 has been issued how would this solve the Turbotax issue of not having US in the dropdown menu?

DaveF1006

Some firms indiscriminately issue K-3's to partners thinking it's a requirement to issue even though no foreign income is distributed to a partner. The IRS states that if there is a Domestic Filing Exception for filing K-2 or K-3, these forms do not need to be issued. Please read this for more details and look under Domestic Filing Exception.

If you are certain that all of your income is US -based, you do not need to file a K-3. This is why there is no drop-down that includes the US.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"