How do I avoid double taxation from K-1s for CT and NJ as beneficiary of an estate?

I received a K-1 for both NJ and CT as beneficiary of an estate. The CT-1041 K-1 had the income under the CT Sourced Portion. The NJK-1 listed only the total distribution amount. When I temporarily removed the K-1s from the Federal, NJ, and CT returns, I saw the amount I am paying to NJ and CT combined is nearly double my tax rate for NJ or CT. How do I fix this in TurboTax, etc.?

359

Expert Alumni

Mar 7, 2023 8:48:56 AM

What is your resident state? Generally, your resident state will provide a credit for taxes paid to another state on the same income that is taxed by both states. In other words, while two jurisdictions may impose a tax on your income, because of the resident tax credit, your total tax should be no more that what your resident state would impose. It is not clear why your tax due for New Jersey and Connecticut would increase after you removed income sourced to those states.

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How do I avoid double taxation from K-1s for CT and NJ as beneficiary of an estate?