My wife has an S-Corp and I'm trying to figure out how to address an issue. She received a k-1 and related documents from the accountant, but the amount of taxes paid in the K-1, which was issued in January 2024, are limited to 2023 federal taxes. The 2023 state and local takes were paid a few weeks ago - well after the K-1 was issued. We're itemizing and every additional expense helps.
The solution that seems obvious to me is to have the accountant refile the k-1 to include the recent payments. And I'm hopeful that's where we'll end up when we speak Monday morning. If not, an alternative would be to input the data somewhere else in turbotax.
I could update the k-1 information to include the additional taxes paid and leave a written note explaining what i did should we ever get audited.
Alternatively, i could included in in the "Estimates and Other Taxes Paid" block, under "Other Income Taxes".
I'm hoping others have had similar experiences and can recommend a path forward.
Yes, if you are saying there is state income tax withheld and paid by the S-Corp for your wife for the 2023 income tax and not yet included on the K1 or a W-2 issued to her, then you can enter them under Estimates and Other Taxes Paid, Other income taxes so that the tax withheld flows to the state return.
Please update and clarify if more details would allow a more specific answer.
Hi DianeW777, Thank you. That was my first instinct and what I hoped would be the correct choice because the net tax benefit of that pathway are far greater. If I included it as a business expense and lower the net income of the k-1, the impact is not as great.
When you meet with the accountant confirm the actual tax is withheld and paid for 2023 and why it was not included on the K1. We want to be sure you are not adding tax withholding for income tax if it's actually something else.