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Get your taxes done using TurboTax
Since the LLC is paying the state tax, it should be paid as an estimated tax payment to each participant in the LLC. Otherwise the tax payment will be credited to the LLC which does not allow a credit for the individual participants in the LLC. The profit/gain should be reduced by expenses including state income tax payments made by the LLC before disbursing the actual net proceeds to the LLC participants.
Based on your information there would be no credit for taxes paid to another state at the individual income tax level. Maybe you should discuss this with the person doing the LLC return to be clear on exactly how it is being handled.
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‎February 27, 2024
3:52 PM