Credit for taxes paid to another state through Estate Sch K-1

[DCosenza]

My son, who lives in North Carolina, received a (final) Sch K-1 from the Estate of his uncle who died. It shows no income, a rather large LTL carryover (box 11D/14Z) , a deduction for attorney/administrative fees (box 11A) and $127 NEW YORK state taxes (box 11B). 

Can he receive a CREDIT for the NEW YORK taxes on his NORTH CAROLINA tax return? (He has/is not filing a NY state return. There are no taxes due in that state)

If so, how do I handle this in TT? (I'm doing his taxes)

Thanks for the correct procedure/any help.

[MarilynG1]

There should be a question in the North Carolina interview asking about 'taxes paid to another state' where he can enter the amount of tax paid to New York.

Click this link for info on Tax Credits in North Carolina.  This may require mailing his North Carolina return with a copy of the K-1. 

He could also file a Non-Resident State Return to New York to get the tax he paid there refunded to him.

Click this link for more info on How to File a Non-Resident State Return. 

[DCosenza]

Yes, there is an "Other State Credit worksheet" that is picking up the $127 NY tax paid (that was originally entered when I entered the Sch K-1 Trust (from the estate). The problem is that it is asking for "income earned in another state subject to NC tax" and THERE IS NO INCOME earned in New York. (The K-1 shows a Long term Loss, some administrative/attorney fees and the $127 state tax.) Entering -0- or the loss amount itself results in a flagged error for the worksheet.

Way around this?

Thank you so much for your help

Doreen

[DCosenza]

Marilyn,

I followed your link to the instructions for filing a nonresident NY tax return which now shows the $127 refund due to my son. Thank you for that.

When it asked for the portion of income related to those taxes I put in the ($3000) loss that was picked up for this year on the NC tax return. I didn't include the whole loss since it will be picked up by NC for the next few years and there are no more NY taxes associated with this K-1 (final). Was this correct?  Or should I enter the total LTL? I just want him to get his refund and be done with this! lol

Also do I : 

-- mail copy of Sch K-1 Trust with the NY nonresident form? (and nothing else)

-- mail a copy of the NY return to NC?

-- or?

Thanks again so much for your help.

Doreen