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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DianeW777

No. If you have taxable foreign dividends they must be included with other taxable income. If you have deductions then they will be used as well if you can itemize your deductions. The dividend income from your 1041-K1 should be shown on line 2a or 2b. Line 14 would simply be additional information about those dividends possibly. In the instructions for the 1041-K1 there is no '14B'.

Form 1041-K1 Instructions (see Box/Line 14)

If your additional statement shows foreign dividends and itemized deductions enter only what is on your K1 and additional statements. Do not enter any information in fields where do not have any figures.

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