I entered my K-1 partnership information in Turbo Tax but do I also need to add the partnership information/income in the state portion of my taxes? There was a prompt for this but I wasn't sure if I needed to add it to my MD state portion as well or if it was already added when I added it earlier in Turbo Tax???
Thanks!
I don't know about MD, but usually you don't need to make a separate state entry unless the partnership had income from running a business in a particular state (or had tax-exempt from a particular state). Then you may need to file a non-resident return in the business state and will probably only pay tax on the portion of income that came from that business/rental.
Some states do have odd taxes. NH taxes on distributions from partnerships and not any of the numbers on K1s and not on capital gains or return of capital. So that can require a special state entry. But that is unusual.
One thing you can do is to look at your state forms and verify that the k-1 income shows up somewhere. Sometimes the states just take your federal AGI so you know it will be in there.
You also could check out https://www.marylandtaxes.gov/forms/20_forms/510K-1.pdf and verify the 510K-1 in TT forms mode since you are using the windows download version. (A great idea because it is so easy to see the forms and to right click on a number and see where it came from - choose "data source").
Thank you for your reply and understanding question.
That’s what I thought. Previous years I did not enter anything extra for the state related to the partnership income (dividends/interest/etc.) because it was previously entered earlier in turbo tax from the K1 in the business income section (I think). This year, I was a little confused because the turbo tax wizard had something about partnership income (maybe it said ‘extra partnership income’) while going thru my state.
I believe you are correct and I’m going to correct what I entered. Figuring out if it was included or not seems difficult. I may try again and check out the MD510-K1 or see if I can find the source in TT. Thanks again for your reply!!