I live in TN but have a K-1 from IN so I am trying to file a Indiana State form. I entered the K-1 data including IN State Tax Withheld. At the end of it all TurboTax did not apply this amount to my taxes due. Now what?
You can manually enter the amount of IN tax withheld on the K-1 by following these steps:
TurboTax desktop version (CD/Download)
- Go into Forms Mode by clicking on the Forms icon in the blue bar at the top right of your screen. [See Screenshot #1, below.]
- Click on the Open Forms icon at the top of the Forms in My Return list. [Screenshot #2]
- Click on the plus (+) sign next to Indiana to expand the list.
- Click on the plus (+) sign next to Form IT-40 (even though you're doing a nonresident return).
- Double click on Tax Payments Worksheet to open it. [Screenshot #3]
- On the Tax Payments Worksheet, enter the amount of state and/or county withholding on line 13. [Screenshot #4]
- This amount will then flow to the IT-40PNR, line 14.
- To return to the interview, click on the Step-by-Step icon in the blue bar at the top right of your screen. [Screenshot #5]
- Click on Federal Taxes > Deductions & Credits. [In TT Self-Employed: Personal > Deductions & Credits]
- In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Other Income Taxes.
- On the Other Income Taxes screen, in the Other Income Taxes Paid in 2016 section, click on the Start/Revisit box next to Withholding not already entered on a W-2 or 1099.
- Enter your payment(s) on the next screen, Other Withholding Not Already Entered.
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State tax withheld is reported in box 13 of the K-1 (partnership) with Code W, or box 12 of the K-1 (S-Corp) with Code S. If you enter in on the K-1 in the 1040, it will flow to the Tax Payments Worksheet and then to the IN return.
If, however, you have local taxes withheld, they have to be entered manually in the IN return.
If you are using the CD/Download version of TurboTax, you can go into Forms Mode and enter the amount of county taxes withheld on line 13 of the Indiana Tax Payments Worksheet.
I am having this same issue with TurboTax 2021. I am a MIchigna resident with a State K-1 for Indiana and am filing a non-resident return in Indiana. In the Step-by-Step there is zero question or consideration for K-1 which is unhelpful.
I went to Forms and entered the amount of withholding on line 13 as described, so this schedule appears correct. However, the withholding from my K-1 does not flow through to the IT40RNR tax form. I am also unable to enter any withholding directly on the IT40RNR. I am not