state tax on k-1

Forum|Forum|5 years ago
June 1, 2021
1 reply
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How does state income tax for K-1 work? Should the income I earned on K-1 be separately reported based on the location of partnership?

Could you explain how turbo tax handle state income tax for K-1? I am a MD state tax filer but K-1 I received is from NJ. Do I report that K-1 on both MD and NJ or just NJ?

nexchap

Level 9

I can't speak to the specifics of MD or NJ, but in general:

You may need to file a non-resident tax return in any state where the partnership earned income. The K-1 should break out what part of its K-1 may be subject to taxation in any given state. Whether you need to file will depend on the rules and thresholds for each state (they all have different rules).
The state where you are a resident will typically require that whatever you declare on your Fed return is the starting point for your state return. But you may be able to claim credits for taxes you pay in other states, so that you're not doubly taxed on the same partnership income.

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