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New Member
posted Jun 4, 2019 5:24:59 PM

Which state(s) to pay K1 taxes??: We have K1 1065 income from real-estate properties in Michigan, via an LLC with headquarters in Maryland, and we live in PA! Help?!?!

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1 Best answer
New Member
Jun 4, 2019 5:25:01 PM

It depends -

If will have a you have a K-1 that reports income from real estate located in a nonresident state, you may have a nonresident state income tax filing is the rental income meets the filing threshold for the state where the property is located.

For MI, if your MI sourced income is more than $4,000 of MI sourced income, then you will need to file a nonresident state income tax return.

You will not have to file any MD state income tax return because the income is sourced to where the property is located and not to where the LLC was formed.

You will also need to include the K-1 on your PA resident state income tax return.

If you do have to file a non-resident state income tax return to report your K-1 rental income, then you will be able to claim a resident state income tax credit in your home state for any taxes paid on your nonresident state income tax return.

If you do have a nonresident state filing requirement, then just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return.

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797

1 Replies
New Member
Jun 4, 2019 5:25:01 PM

It depends -

If will have a you have a K-1 that reports income from real estate located in a nonresident state, you may have a nonresident state income tax filing is the rental income meets the filing threshold for the state where the property is located.

For MI, if your MI sourced income is more than $4,000 of MI sourced income, then you will need to file a nonresident state income tax return.

You will not have to file any MD state income tax return because the income is sourced to where the property is located and not to where the LLC was formed.

You will also need to include the K-1 on your PA resident state income tax return.

If you do have to file a non-resident state income tax return to report your K-1 rental income, then you will be able to claim a resident state income tax credit in your home state for any taxes paid on your nonresident state income tax return.

If you do have a nonresident state filing requirement, then just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return.

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797