topic Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax. Specifically Federal K1 shows one interest amount and Alabama K1 shows a lesser amount. in State tax filing

Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax. Specifically Federal K1 shows one interest amount and Alabama K1 shows a lesser amount.

oilmill — Thu, 09 Jul 2020 22:38:26 GMT

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

DavidS127 — Fri, 10 Jul 2020 18:00:30 GMT

The differences between your federal and Alabama K-1 amounts will come up during the state income tax interview for your Alabama state tax return. Alabama's state taxable income calculation doesn't start with the federal total, so during the Alabama state tax interview questions you'll be asked to enter or confirm the amounts to use for the Alabama K-1 you received.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

oilmill — Fri, 10 Jul 2020 21:36:41 GMT

Thanks but this did not solve the problem. No question came up during the interview to enter or confirm the amounts to use for the Alabama K-1 that I received. I was asked only 1 question about the K1-- The statement reads: "Your income or loss distributed from ...... may need to be adjusted for Alabama purposes. There is a box which has adjusted state income taken from other income (Other portfolio income). The amount is correct. No other option to adjust.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

DavidS127 — Fri, 10 Jul 2020 21:50:09 GMT

Which amount from your Alabama K-1 is not being reported correctly on your Alabama tax return, and how is the the amount on the Alabama return different than the Alabama K-1?

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

oilmill — Fri, 10 Jul 2020 21:58:52 GMT

Interest income on Federal K1 is $65,969 and State K1 $29,398. Federal Dividend income is $2,395 and Alabama dividend income is $1,236. This is an estate. (Alabama K1 Form 41). Thanks.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

DavidS127 — Fri, 10 Jul 2020 22:27:52 GMT

You have estate Form 1041/Form 41 Schedule K-1s being entered into your Form 1040/Form 40 individual tax returns, correct?

What amounts are included in your Alabama state tax return for the interest and dividend income from this K-1 (line 6 on Form 41, with the detail on Schedule B)?

You can see your state forms in the Forms mode of TurboTax Download/CD (icon top right in blue bar), but in TurboTax Online you will need to preview the PDF of your tax return to see the forms. Or, you may be able to see it in the summary at the end of your Alabama tax return questions.

Here's how you create and print a PDF of your current year tax return, if you can't see the interest and dividend amounts you need:

If you're not already in your return, sign in and open or continue your return.
Select Tax Tools and then Print Center from the left menu.
Select the first option, Print, save, or preview this year's return and follow any additional instructions.
If you haven't paid your TurboTax fees yet, you'll have to do so to create the PDF.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

oilmill — Fri, 10 Jul 2020 22:35:45 GMT

I am looking at Schedule B of my Alabama Return . Under Line 1 the Estate is listed as paying interest in the amount of $65,969. I have used Turbotax for many years. This is a one time thing: My Mom passed away in 2017 and this will be the last time I face this issue.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

DavidS127 — Fri, 10 Jul 2020 23:09:17 GMT

So, the $65,969 amount needs to be adjusted to the Alabama amount of $29,398 for interest; and the Alabama dividend amount of $1,236 needs to be added.

Look for "adjustments" screens in the Alabama state tax questions, where you can make adjustments to the federal amounts reported on your tax return.

As an aside, I'm curious why the federal dividend amount reported in box 2 didn't show up on the Alabama tax return. Did it show up as dividend income in your federal return?

Also, was it reported anywhere with your K-1 that any of this interest and dividend income is U.S. Bonds interest not taxable by states? If so, that can be entered when you are entering the federal K-1, on the "box 1 and box 2" screen.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

oilmill — Fri, 10 Jul 2020 23:13:31 GMT

I am planning on calling the bank on Monday with that very question: ie difference between federal and state interest. I can only assume that its US obligation interest.

Re: Alabama K1 information is different from Federal K1 on same entity. How to change in turbotax...

Samp5183 — Tue, 12 Apr 2022 01:20:40 GMT

There is no K-1 Form 41 in the TurboTax Deluxe desktop version for Alabama. Confirmed with two TurboTax representatives on 4/7/22 and 4/11/22. Reported in surveys and now I have an appointment with the Alabama Department of Revenue to correct the problem 4/14/22.