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Returning Member
posted Apr 17, 2023 3:03:41 PM

Entering estate K-1 in residence state

I lived in State A for all of 2022.

A family member passed away this year and I was a beneficiary of their estate. This family member's estate is based in State B. I received a federal schedule K-1 (form 1041) as well as the equivalent form for State B.

I need to report the info from my K-1 on my state tax return for State A. However, I'm now on a page that doesn't make sense to me:

"If your State A K-1 shows any differences between federal and State A amounts, select that K-1 from the list below to edit."

I don't have a State A K-1, just a State B one. Should I assume that the amounts are the same as the federal amount? Am I meant to do my own research to figure out what State A taxes differently? If it matters, the income involved is pretty trivial (i.e., below the threshold to even need to file in State B).

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1 Best answer
Level 15
Apr 17, 2023 3:54:44 PM

By entering your K-1 into the program, your state of residence return has already been addressed (i.e., you are taxed on all of your income on your State A return).

 

The State B return would be a nonresident return for you (if one is required to be filed) and you should prepare that first, if necessary.

3 Replies
Level 15
Apr 17, 2023 3:54:44 PM

By entering your K-1 into the program, your state of residence return has already been addressed (i.e., you are taxed on all of your income on your State A return).

 

The State B return would be a nonresident return for you (if one is required to be filed) and you should prepare that first, if necessary.

Returning Member
Apr 17, 2023 4:04:59 PM

Sorry, but that's not what I'm asking.

 

I entered my federal K-1 into the program.

Now the program is asking me whether my State A K-1 shows any differences from the federal one (since it is common for state K-1s to have different line numbers than the federal K-1—I assume this is because the state taxes things differently?).

 

I have no way of knowing whether the State A K-1 would show any differences because I don't have a State A K-1.

Level 15
Apr 17, 2023 4:07:08 PM

You do not have a State A K-1 but you most certainly have a federal K-1 and the difference beteen that K-1 and a State A K-1 (which you do not have) is zero; there is no difference.