topic Re: K-! reporting in State tax filing

K-! reporting

jmm — Wed, 28 Aug 2019 16:09:00 GMT

I have received a K-1 from a limited partnership and have noticed that in addition to the Federal information, I have received several state related K-1s. However I am not a resident of any of the states for which I received these K-1s. What are my obligations. I have assumed that all the Federal income that I have received would be reported on my resident state return.

Re: K-! reporting

Anonymous_ — Wed, 28 Aug 2019 16:20:10 GMT

@jmm wrote:

...What are my obligations. I have assumed that all the Federal income that I have received would be reported on my resident state return.

Your obligations depend upon the exact filing requirements for the state(s) involved.

Partnerships that have income sourced from a particular state (e.g., conduct business in that state) are typically required to file an income tax return for that state and that is concomitantly reflected in the K-1s issued to the various partners.

The site below has some relevant information concerning state filing requirements for all states. However, the information will only give you a rough idea since it is from 2017 (you should check each state's web site for the most current filing requirements).

https://www.forbes.com/sites/baldwin/2017/02/08/state-filing-requirements-for-mlp-investors/#73f00c4c3751

Re: K-! reporting

Anonymous — Wed, 28 Aug 2019 19:31:10 GMT

you are a nonresident in these other states. each of these states that has an individual income tax has its own filing requirements for nonresidents. you'll need to check them out. what about if there is a loss showing for the state? good question. some states will allow a nonresident to carry forward a business NOL. others do not. by being able to carry forward the NOL, you may be able to use it to offset future gain reported in that state. another reason to possibly file, is that the partnership was required to withhold state income taxes for its non-residents and the only way to get it back is to file. In practice, if there is only a few $ of income in a state, and/or no state income taxes withheld the assumption will be made by the tax preparer that no return is required.

Re: K-! reporting

jmm — Thu, 29 Aug 2019 20:37:26 GMT

Thank you. Your reply is quite helpful