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Can I take a K-1 income tax credit?
We have a LLC based in Connecticut that owes taxes this year. TT Business generated our Schedule CT K-1 and under Part IV, Income Tax Credit Worksheet it shows an amount on Line 7 - Balance of income tax liability. I am not a Connecticut resident.
1) Can I take this credit on my Connecticut personal taxes?
2) If I can take the credit, how do I enter it in TT Deluxe?
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Can I take a K-1 income tax credit?
I was able to find the answer to this from the Connecticut Department of Revenue Services. The LLC pays the Connecticut tax on the members' behalf and the amount under Part IV - Connecticut Income Tax Summary can be applied as taxes paid on personal returns. On page 2 of Form CT1040NR/PY (non-resident in my case) under W-2 and 1099 Information, enter the Federal ID # in Col.A, leave Col B blank (there are no wages or tips), check the Sch CT K-1 box and enter the CT Income Tax Withheld in Col D.
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