I am part owner of a farm LLC in Iowa. Iowa made a big change this year for LLCs and other Passthru Entities with nonresident partners: https://tax.iowa.gov/iowa-composite-returns-2022. There is a new form, PTE-C, along with several other associated forms that need to be submitted for business taxes. I took care of all this through TT Business, which produced an Iowa K-1 form for each of the partners. In this case the business ends up being charged almost 2X the normal liability for each member. Then it's up to each member to file a personal Iowa tax return to get the excess refunded through a credit. This credit should be on Schedule CC.
I'm using TT Premier for my individual taxes. It was last updated yesterday. I've been through all the menus and cannot locate where I enter this Iowa K-1 form credit and produce Iowa Schedule CC. This is somewhat infuriating since the business ends up paying almost 2X my Iowa liability from Iowa form 1065, and then on top of that I end up paying the normal out of state Iowa tax again on my personal Iowa 1040. This turned a relatively simple process in previous years into something far more complicated with multiple extra forms to file. The unsuspecting filer could pay Iowa almost 3X the tax due if he wasn't paying attention.
It looks like I have three options:
- Figure out where to enter the K-1 credit in TT Iowa
- Abandon TT for personal Iowa taxes and fill out the forms by hand
- Elect out of the whole PTE-C method for 2022 by having all partners sign the Nonresident Member Composite Agreement.
Any suggestions as to how to enter the K-1 credit in TT Premier would be greatly appreciated. Thank you.
