Multi-state

cengel7 — Thu, 16 Apr 2020 00:25:36 GMT

I have royalty earnings from Oklahoma and taxes were withheld by OK. I reside in Kansas. How do I not pay taxes on those royalties in Kansas? Turbo Tax uses Federal Adjusted Income, which includes those royalties to figure my Kansas state taxes.

Re: Multi-state

DaveF1006 — Thu, 16 Apr 2020 03:08:42 GMT

You will need to file an Oklahoma non-resident return to declare the Royalty income, which is usually reported in a 1099 MISC. To report, go to federal>wages and income>other common income>Form 1099-MISC.

When you begin working on your 1099 MISC, be sure to check the box where it says my form has other info in boxes 1-18. In boxes 16-18 is where you will report the state income and the income taxes withheld by Oklahoma.

After this is reported, go to state in your left navigational pane and select state. You will prepare your Oklahoma non-resident return first. There will be a section where you will need to allocate your royalty income to Oklahoma but when this state return is complete, you will then prepare your Kansas resident state return. If properly prepared, you will be given credit for all the taxes paid to Oklahoma in your Kansas state return.

One final note, as you go through your Oklahoma return, it will have you allocate all your income. Be sure you only allocate the Royalty amount reported on the 1099 MISC, if that was your tax document that you received. Also as you go through the questions in the federal return, indicate this is investment property and not business property.

topic Multi-state in State tax filing

Multi-state

Re: Multi-state