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WSO
Level 3

Adjusting K-1's to reflect ONLY income sourced from that State

Many of TT state returns don't provide a way (at least in the step-by-step interview) to reduce the  LLC rental income/loss to reflect only what the state version of the K-1 shows for that state.  Iowa is one example, but not the only one.   Is the solution to go into forms worksheet for each state and make the changes there?  Problem is I tried and TT won't always let me change the values TT inserted to reflect the income/loss for that state.  Using Premier for Windows Desktop . Help!

2 Replies
Mike9241
Level 15

Adjusting K-1's to reflect ONLY income sourced from that State

can't be sure about every state. once you complete the Federal K-1 TT should generate a state K-1 for each state that's included with the app. you will have to buy states that are not included. then I would go into forms mode to enter that state's k-1 data. be careful. non-resident states need to be done first so if you pay out-of-state taxes, TT can calculate the proper credit for your resident state.   also, be careful about your resident state. in most cases, no entries are needed except if the federal data needs to be modified for your state.

 

in other words, to get nonresident state numbers into TT you have to prepare the nonresident state returns. also, caution is warranted - is there a need to file in all the nonresident states. there is no one answer even if you have income there because all states have filing thresholds for part-year and nonresidents. you can go on the internet to that state's department of revenue and usually are able to get instructions which will contain this info.

 

WSO
Level 3

Adjusting K-1's to reflect ONLY income sourced from that State

Appreciate confirmation that I need to use TT forms to enter the state specific amounts.  I have completed my Fed TT and installed the 17 states.  Yes I see NR K-1 forms (and worksheets) under each state I installed.  Some of my six K-1's do not apply to each state.  How can I delete state K-1's TT put in a state folder, that don't apply to that state?  Possible? Advisable?  If not I will replace the amounts TT transferred from the federal K-1 with the amounts in each states K-1 annotates or zero's.  

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