US Treasury Int reported on K-1

Forum|Forum|3 years ago
February 23, 2023
2 replies
0 views

I am using TurboTax Business for a Trust tax return. I entered US Treasury Int (Box 3) in TurboTax step by step. However, the K-1 does not state US Treasury Int anywhere including Box 14 Other Information. I can't believe the tax preparer needs to separately provide this information to a beneficiary. A post in another thread stated that US Treasury Int was included in a received K-1 (https://ttlc.intuit.com/community/taxes/discussion/us-bond-interest-on-schedule-k-1-1041-federal-and-state-forms-deducted-twice-from-state-income/00/2098743) Is there a way that US Treasury Int is reported on the K-1 in TurboTax Business? Thanks.

TurboTax Business Windows

Best answer by Anonymous_

@TD2023 @TD2023

Note that you can enter the amount of US Treasury interest on your K-1s in TurboTax Business by entering Forms Mode and inputting a Z code with a corresponding notation.

Untitled.png

SantinoD

US Treasury Interest is exempt from State and Local income taxes. Double-check that you are not looking at the State K-1.

Yes, US treasury Interest is taxable on the federal side, so you should see it on the Federal K-1

TD2023Author

SantinoD, I do not understand your reply. as follows:

SantinoD: US Treasury Interest is exempt from State and Local income taxes.

TD: I know

SantinoD: Double-check that you are not looking at the State K-1.

TD: There is no state K-1.

SantinoD: Yes, US treasury Interest is taxable on the federal side, so you should see it on the Federal K-1

TD: I agree. However, I would think the Trust Federal 1041 K-1 should state its Treasury interest in section 14 Other Information. The Federal 1099 states its Interest on US Savings Bonds and Treasury Obligations. (Box3).

Anonymous_

Employee

@TD2023 wrote:
TD: There is no state K-1.

The state K-1 is where you would report US Treasury interest.

The federal K-1 (1041) does not contain an entry for US Treasury interest because the interest is not federally tax-exempt.

ThomasM125

I agree that the K-1 schedule should make reference to the interest income being from US obligations, since it has special treatment on your state tax return. You can contact the issuer of the schedule, but mostly likely they won't be willing to correct it. You need to enter the income as interest from US obligations in order to get the correct treatment on your tax return.

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

Anonymous_

Employee

@ThomasM125 wrote:

You can contact the issuer of the schedule....

The original poster (who I suspect is the same as @TD2023) is the issue of the schedule, but it trying, apparently, to provide information concerning the amount of US Treasury interest to the beneficiaries on their K-1s (or a statement).

Anonymous_Answer

Employee

@TD2023 @TD2023

Note that you can enter the amount of US Treasury interest on your K-1s in TurboTax Business by entering Forms Mode and inputting a Z code with a corresponding notation.

Untitled.png