I live in PA and received a DE Form 400, Schedule K-1

[sylvatica]

I live in PA and just received a Federal (Final) Schedule K-1 Form 1041 which shows (1) Interest Income $10, and (4a) Net long-term capital gain of $904.  I also received a Non-Resident DE Form 400, Sch K-1 which shows (5) Capital gain allocable to Delaware $2939.

Questions: 

1.  Do I need to file a DE non-resident return for $2939?

2.  I assume that I need to file this also with PA.  Do I use the $904 from the federal return or the $2939 from the DE K-1? 

3.  Do I need to file a PA Schedule J?

[ThomasM125]

Delaware requires you to file a tax non-resident tax return if you have any income from Delaware sources, so you do need to file a tax return for Delaware.

The Delaware form 400 is not a federal tax reporting document, so you wouldn't normally be required to enter it on your federal tax return. However, if it reports income that you have not included on your federal tax return, then you should enter that income on your federal tax return.

If you have estate or trust income to report in Pennsylvania, you need to file PA schedule J.  

[sylvatica]

Thank you for your quick response.  I need to clarify my 2nd & 3rd question.  

As a resident of PA, I assume I have to include the capital gains from the K-1 on my PA return.  My federal K-1 shows 914.  And the DE K-1 shows 2939.  For the PA return, do I want to use the amount that Turbo Tax brought over from my Federal return ($914) or do I want to use the $2939 that is on the Delaware K-1.  (There is no PA K-1 since this trust was in Delaware).  

I have no other estate or trust income other than this one capital gains from Delaware.  Am I right to assume that I need to include this on my PA return?  (just not sure which amount to use .... the federal $914 or the Delaware $2939 .... I have no idea why they are different numbers but that is what shows on the two K-1s)

Thanks so much for your help!

[DaveF1006]

No, the Delaware K1 is a state specific K1 and thus does not need to be reported in your PA return.