I have a federal K-1 from a partnership with income in Line 1 and Line 2.
Because these lines can't be entered together in Turbotax I have to make two separate K-1s (One with all information except Line 2 - let's call it "K-1 Line 1", second with only Line 2 - let's call it "K-1 Line 2").
These two federal K-1 "K-1 Line 1" and"K-1 Line 2" are porting into my NJ state return as two separate K-1s entries.
Now I have an NJK-1 form to enter for state taxes for this partnership. It's one document and it's not split by Line 1,2,3 types of income.
My options:
Summary: Turbotax forces you to split K-1s by income types and Line 1,2,3. But the NJ state NJK-1 form has only summarized data for all income types. How can I handle it correctly?
In the NJ return Partnership Income section, continue the entries in NJ as if there were two K-1s.
Let's say your federal and NJ K-1s have $50,000 in line 1 and $25,000 in line 2. If you enter them separately in the NJ return, TurboTax will combine the income from both and enter the total ($75,000) on line 21 of the NJ 1040, p. 2.
Thank you for your response!
> In the NJ return Partnership Income section, continue the entries in NJ as if there were two K-1s.
It's impossible, NJK-1 is not split by sources of income. So I can't answer "Yes, I received NJK-1" to both of these K-1 forms and input the right data because NJK-1 contains only a summation of all income sources (this is confirmed with partnerships), there is no way to split NJK-1 between Lines of K-1.
> Let's say your federal and NJ K-1s have $50,000 in line 1 and $25,000 in line 2. If you enter them separately in the NJ return, TurboTax will combine the income from both and enter the total ($75,000) on line 21 of the NJ 1040, p. 2.
Turbotax doesn't have a flow to apply NJK-1 to this total value on NJ 1040, p. 2.
Turbotax allows you to input NJK-1 for a specific K-1 only. Input full amounts from NJK-1 to one of K-1 or both of them both lead to incorrect results and totals either way.
I contacted Turbotax support about this question yesterday. They were not able to help me and it was reported as a bug in K-1 flow design. Looks like there is currently no way to execute the described scenario correctly in Turbotax.