The answer to your question is that you will enter your Schedule K-1
(for Oregon) in the federal side of the TurboTax program, just as you
would with any other K-1. To do this you can locate the Find / Search box in TurboTax, type in the exact search term "k-1" and click the button. Then you can click on the Jump To
link that will appear directly beneath in the search results. This
will take you to the main interview screen where you can input your
Schedule K-1 data. Please see the screen-capture image directly beneath
this text for a visual illustration; simply click the picture to open.
If
you are a full-year Oregon resident, then this completely takes care of
your issue for the following reason. As an Oregon full-year resident,
your Oregon tax will be based on the amount of your federal income (with
a few adjustments). What this means for a Schedule K-1 entry is that
the income from this item will be taxable on both your federal and
Oregon returns.
If you are a part-year Oregon resident, or an
Oregon nonresident, on the other hand, then you will need to be careful
as you proceed through the Oregon part-year or nonresident tax return.
You will be asked at some point there if your K-1 income is
"Oregon-source" or not, and if so then how much. You will need to
answer those questions appropriately.
Similarly, on any other
state tax return in TurboTax, you will need to remain mindful of the
Oregon-source nature of this Schedule K-1 income, and then answer the
questions carefully in the software program. This process would be very
much the same as W-2 wage income earned in one state versus another
state. You just need to be watchful that such income is being taxed by
the "right" state or states.
In the case of this Schedule K-1, it
will be Oregon-source income, entered initially on the federal side of
the TurboTax program (just like wage income always is). And the
allocation of that income, among states, only becomes relevant if the
taxpayer is a part-year or nonresident of the state in which the income
is sourced.
Thank you for asking this question.
