Schedule K1

[user17577204458]

I received a schedule k1 and will be entering it on my taxes.  However, I also received schedules from different states do I need to do anything with those?

[MarionH]

If the Schedule K-1 packet you received includes information about states where the partnership generates income, you may need to file nonresident state tax returns for those states to report the income. Generally, you must file a nonresident return when earning income from sources in states where you do not live, such as:

• Out-of-state rental income, gambling winnings, or property sale profits
• S Corporation or partnership income
• Beneficiary income from a trust or estate
• Incorrect state tax withholding by your employer

To report the federal K-1, enter it on your federal return and indicate in the "Other State Income" section of TurboTax that you earned money in other states. TurboTax will transfer the K-1 information to each state return, where you can make any necessary state-specific adjustments.

Complete nonresident state returns before filing your resident state return to ensure you receive credit for taxes paid to nonresident states. Before filing, review or print your returns to confirm income isn’t duplicated across state returns.

*Note: Some entities may file state returns on your behalf.  That information will be noted in the Schedule K-1 packet information.  If that is the case, then they are informational and not reported in your individual return.

[SwapnaM]

Yes, if you received state-specific Schedule K-1s, you may need to file nonresident state tax returns depending on the source and amount of income reported in each state.

You generally need to file a nonresident state return if:

• The K-1 shows income sourced to that state, and
• The income exceeds the state’s filing threshold.

You should check the tax rules for each state listed on your schedules. Some states require you to file a non-resident return if you have even a single dollar of income from that state. Others have a minimum income threshold (e.g., $1,000 or more) that you must meet before a filing is required. If the K-1 shows losses or minimal income, you may not need to file in that state.

Some states allow composite filing, where the partnership files a single return on behalf of all nonresident partners. If your partnership did this:

• You may not need to file individually in that state.
• Check your K-1 or contact the partnership to confirm.

On your resident state return, you'll get a credit for that payment to the non-resident states, so you're not paying tax on the same income twice. 

@user17577204458 Thanks for the question!!

[user17577204458]

Thank you for the information.  Where do I look to see if the state returns have been filed on my behalf? The state in question is MO and I did get a form MO-NRP and Missouri schedule K1 equivalent.

[SwapnaM]

The forms you received, a Form MO-NRP and a Missouri schedule K-1 equivalent, are sent by the partnership to its partners to report income earned in Missouri.

• Check your MO-NRP form—it may indicate participation in a composite filing.
• Contact the partnership or entity that issued the K-1 to confirm whether they filed for you.
• If they did not file on your behalf, you may need to file a nonresident Missouri return yourself.

Filing requirements for MO: https://dor.mo.gov/taxation/individual/additional-resources/non-residents.html 

@user17577204458 Hope this helps!!

[user17577204458]

I do not see anything relating to composite filing on the form and the only amount listed on this form MO-NRP is in Part1 13e other deductions.  My federal k1 has no amounts listed.  I will reach out to the partnership and check to see if they filed on my behalf.

[user17577204458]

On form mo-nrp Is other deductions considered source income? this is the only place there is an amount listed

[MarionH]

Other deductions is not considered source income.  If no income is listed on the K-1, then there is no need to file that information.  However, if there is income listed that is a loss, that would need to be filed as that will create a passive loss carryover to be used in future returns.