Already paid state taxes directly to the state of Delaware for my business (now closed). Do I need to also report them in Turbotax when doing my regular return?

Forum|Forum|4 years ago
March 10, 2022
3 replies
21 views

Hello, I had a small business that earned no income in 2021 and 2022. In order to close it, the agency helping me required me to pay state taxes to the state of Delaware for 2021 and 2022 already, which I did. They said I am all set from a tax perspective for the business.

I live and work in California .

My question is, since I paid the state taxes (franchise tax) for the small business directly to the state of Delaware on the delaware state website, do I need to report this for some reason in Turbotax?

Basically is the IRS OK with it if I pay taxes directly to the state of Delaware outside of Turbotax, then file a separate return just for California and federal with Turbotax?

Thanks,

Taxes202103

JamesG1

Level 15

This sounds like a single member LLC reported as a disregarded entity on your personal tax return. I would expect you to report the disregarded entity on Schedule C of your personal tax return.

Delaware state franchise taxes would be deductible on your Schedule C if you were reporting business income and expense but it sounds like you are not reporting Schedule C income and expenses.

It is unclear whether you are subject to the franchise tax for a California LLC.