On the ID K-1 form for Idaho, there is Part V which addresses Composite Filing, Pass-through Withholding, and ABE (Affected Business Entity). Within that section are three lines:
Line 38: Tax paid by the entity on behalf of the owner on a composite return
Line 39: Tax withheld by the entity on behalf of the owner
Line 40: Tax paid by affected business entity
I'm a majority owner of two entities that file K-1s. Per Idaho law, the entities can pay state income for the owners and then those amounts would be credited on my personal state income tax bill and reflected on my Idaho K-1. My accountant prepared my K-1 forms and put the amount each entity paid on my behalf in Line 40; which appears to be the correct place. However, when I enter the amount from Line 40 into TurboTax there is not a credit applied. Interestingly, if I put the amount in Line 38 or Line 39 of TurboTax then the full credit is instantly given.
I'm assuming this is a TurboTax issue and would require an update, but I'm not 100% sure. I have no idea why Lines 38 and 39 would give credit but Line 40 would not. Any help would be appreciated.
