I am a PA resident. In 2023, I received taxable income from an estate in NC. The estate accountant prepared a federal K-1 and an NC K-1. No PA K-1 was created.
After doing my federal taxes with turbotax (including the K-1 income), I had turbotax prepare a non-resident return for NC, with the K-1 reported income. Tax rates are higher in NC than in PA, but I imagined that I would get some kind of credit for these NC taxes (on the K-1 income only) on my PA taxes.
I then used turbotax to prepare my PA state taxes. Turbotax "saw" the K-1 filing and entered it in my PA taxes. It also offered me a screen that said, in effect, "you will see yourself paying taxes twice, in both NC and PA, but don't worry -- later we will get you a credit in PA for the taxes paid in NC."
Then the trouble started. First, although I was taken through something that was looking for tax credits, and the taxes paid to NC were noted, I was shown no credit in PA for taxes paid in NC. In effect, I would (will?) be paying both 4.5% on this income in NC and 3.07% in PA. Is this correct?
Second, in trying to hunt down an answer to this question, I went to the PA turbotax screen for Schedule J (income from estates) and saw a box saying something like, "this income is not subject to PA taxes." I think that this is not true, but for the heck of it, I clicked it, to see what would happen. What happened was that the PA tax on these monies went away. But no credit -- I am simply failing to report income to PA that I should be reporting to PA. Worse yet, turbotax is not allowing me to add this income back in. It keeps telling me that I have no estate income to report, without offering me the capacity to edit. Is there anything I can do to fix this other than "destroying" the PA state income tax and doing it over again?
