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posted May 31, 2019 5:48:10 PM

If a consolidated tax return produces individual state k-1 forms, must the individual file with each state

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1 Best answer
Level 13
May 31, 2019 5:48:12 PM

Unless the business informs you that you have been included in a composite state tax return filed by the entity, the individual receiving the K-1 is responsible for the respective state tax filings.

Having said that, you need to review each state K-1 and then the instructions for each of those states.  Every state will have different filing thresholds.  Additionally, some states require that the entity remit withholding for nonresident taxpayers.  If that is the case, you should be informed of this on the respective K-1 or notes to the K-1.  These amounts are only estimates and are typically based on the highest state tax rate.  The only way to know if you are due a refund for that state is to complete the return and then file if a refund is due.

3 Replies
Level 13
May 31, 2019 5:48:12 PM

Unless the business informs you that you have been included in a composite state tax return filed by the entity, the individual receiving the K-1 is responsible for the respective state tax filings.

Having said that, you need to review each state K-1 and then the instructions for each of those states.  Every state will have different filing thresholds.  Additionally, some states require that the entity remit withholding for nonresident taxpayers.  If that is the case, you should be informed of this on the respective K-1 or notes to the K-1.  These amounts are only estimates and are typically based on the highest state tax rate.  The only way to know if you are due a refund for that state is to complete the return and then file if a refund is due.

Level 2
Oct 3, 2022 10:17:27 PM

I am not understanding the answer. If the composite return is filed, do we still need to file in the state as a non-resident? 

Partners Georgia Form 700 (K-1) if the federal income is (14318) thats a negative, and the total georgia income is a -948 do i need to file a GA state return? 

 

Level 13
Oct 4, 2022 6:41:30 AM

@speedway121 

If you are included in a composite tax return filed by the entity, then you are not required to file a separate nonresident tax return.

This response assumes that your only activity in that state is from the partnership.