topic Taxes paid to other states in Self employed

Taxes paid to other states

Dwallace52 — Mon, 07 Sep 2020 00:06:28 GMT

I am a partner in a partnership. The partnership files a composite tax return in 10 states and I file in my resident state of Ohio. I am trying to enter taxes paid to other states for my Ohio return. TT won’t save the information unless I file a state return through them. It says to file a return before I enter the info.

This wasn’t the case last year. Has anyone figured out how to get credit for taxes paid to other states on composite returns in the 2019 software?

Re: Taxes paid to other states

Carl — Wed, 09 Sep 2020 17:50:41 GMT

When completing tax returns for multiple states, you ***MUST*** complete all non-resident state returns first, and complete the resident state return last. That's the only way possible the program can correctly deal with reciprical tax agreements between states, and work out the property credit on your state resident tax return.

Re: Taxes paid to other states

Anonymous_ — Wed, 09 Sep 2020 21:11:18 GMT

@Dwallace52 wrote:
This wasn’t the case last year. Has anyone figured out how to get credit for taxes paid to other states on composite returns in the 2019 software?

@Dwallace52

If your procedure worked properly with the 2018 software, you might want to contact Support and see if they can determine what, if anything, has changed for 2019.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

@Carl The whole concept behind composite returns is they provide a mechanism whereby the individual partners do not have to file nonresident returns in multiple states.

Re: Taxes paid to other states

Carl — Thu, 10 Sep 2020 00:17:58 GMT

@Anonymous_ from testing I did with the 2017 program, if you don't complete the non-resident returns first, there are a number of cases (not in all cases) where the math will be wrong on applying credits to the resident state return, for taxes paid to non-resident states.

I am also assuming the poster is completing their personal tax return since my screen shows they're using Home & Business. But after reading through the thread again, I'm wondering precisely "where" as well as why they're trying to enter taxes paid to other states, as I would expect that to be dealt with on the 1065 return "before" the K-1 is issued. I can only surmise they have other income from other states not related to the partnership. Looking at the 2019 form 1065-K1 I see no block for taxes paid to any taxing authority.

Re: Taxes paid to other states

Anonymous_ — Thu, 10 Sep 2020 01:39:45 GMT

@Carl wrote:

......Looking at the 2019 form 1065-K1 I see no block for taxes paid to any taxing authority.

@Carl The composite returns that are the subject of this thread are filed with the state taxing authority, not the federal.

Re: Taxes paid to other states

Carl — Thu, 10 Sep 2020 02:25:40 GMT

Aha! That key work I missed was "composite". Got it now!