ErnieS0
Expert Alumni

State tax filing

You will have to file a nonresident return. The composite payment made on a partner’s behalf is like “withholding.” You may owe more or less than the amount paid.

 

There is a screen in the Alabama section for K-1 income. If you are not an Alabama resident, the screen may be blank. You’ll have to check off the type of entity: partnership, estate/trust or S corporation and fill in the details – name, address, EIN, amount of income from all sources and the Alabama amount.

 

Generally, a nonresident of Alabama must file an Alabama state tax return if he or she received taxable income from an Alabama source or performed services within Alabama and the gross Alabama income exceeds the allowable personal exemption. The personal exemption is prorated based on the amount of Alabama income compared to the amount of federal income.

 

In your case, since there was a payment made by the partnership, file a return to receive a refund or pay a balance due.