topic State K-1s in State tax filing

State K-1s

rynlee — Thu, 07 Mar 2024 16:02:45 GMT

Hello, I have received a Schedule K-1 (Form 1065), as well as a K-1 for Arkansas (AR K-1). I have entered the information from Form 1065 into Turbo Tax. Do I also need to purchase the Arkansas state returns from Turbo Tax and enter the information from AR K-1?

I expect to receive several more state K-1s, and so I have the same question about those.

Re: State K-1s

JamesG1 — Thu, 07 Mar 2024 17:24:00 GMT

We are not able to see what is reported on Schedule K-1 (1065) for Arkansas or any other state.

If you do not acquire the state income tax returns, you will not know whether or not you have a filing requirement or owe taxes or are due a refund from any one of those states.

You will certainly want to file a state income tax return if there are pass-through credits or other state credits reported on the state Schedule K-1.

These states may or may not contact you at a later time if they believe that you were required to file their state tax return.

Re: State K-1s

rynlee — Sat, 16 Mar 2024 13:02:39 GMT

Hi @James - can you flesh this out for me a bit more?

Most of the state K-1's that I'm receiving show "0" income, deductions, etc. for that state. Only federal amounts. Would I still want to purchase the additional states from TT and report "0" on those returns?

Re: State K-1s

JamesG1 — Sun, 24 Mar 2024 13:22:02 GMT

You would want to report a state income tax return if you meet the filing requirement for filing for that specific state.

However, $0 income for the state should not trigger you meeting the filing requirement for the state.

The Arkansas filing requirement for nonresidents is shown here per The TaxBook, page AR-1.

What other states are you reporting?