topic Re: 1040X in State tax filing

1040X

MHiggs1 — Wed, 30 Apr 2025 16:52:41 GMT

Hi,

I am amending a return to include a Virginia K1. The K1 does show on the Virginia portion of the return, but more tax is due for Delaware where we lived for the second part of the year.(July to Dec) The Virginia K1 portion consists of S Corp income from Virginia first part of the year.(Jan to June)

What am I doing wrong or would this be correct?

Re: 1040X

Vanessa A — Wed, 30 Apr 2025 17:09:45 GMT

Was the income already reported on the federal side with the K-1? If so, then was the income already reported on the VA and DE returns? If so, then you should not add this as you are double reporting the income. The k-1 from your federal return does transfer to the states. Unless there is a difference in the income amount or some part of the reporting, then you would not need to amend because you have a VA k-1.

Re: 1040X

MHiggs1 — Mon, 05 May 2025 20:10:41 GMT

Hi Vanessa,

Thank you for your response. I have been unable to login to respond, though I've gotten that corrected with Turbotax support.

The Virginia K1 is new to both the Federal and the State. When I look at the forms, I do see it listed on the Virginia return, however Delaware is showing roughly $1900 vs Virginia showing $124 in tax. It just doesn't make sense that income earned while living in VA would be taxed in Delaware?

Marion

Re: 1040X

LenaH — Mon, 12 May 2025 15:11:18 GMT

You are correct. If the K-1 represents income received while only living in Virginia from January through June, then it would be only taxable to Virginia. You have to adjust the allocated income on each state return so that the additional income is taxed properly.

First, complete the allocation on your Virginia return.

Open your Virginia return.
Continue through the screens until you reach the screen, Part-Year Allocation, for Rent and royalty income. Enter the amount of K-1 income sourced in Virginia.
Continue through the return.

Next, complete the allocation on your Delaware return.

Open your Delaware return.
Continue through the screens until you reach Delaware Source Income. Enter 0 next to Rent, Royalties, K-1s.

I completed a mock return with a sample K-1 in the amount of $20,000. My 760PY showed the amount in taxable income and Form PIT-NON showed $0 as sourced to Delaware. See the allocation screenshots below.

@MHiggs1

Re: 1040X

MHiggs1 — Mon, 19 May 2025 15:08:56 GMT

Thank you so much. That makes perfect sense.