If I was an estate beneficiary, and I live in Texas, Is there a way that the portion of taxes paid to Wisconsin is recoverable?

[huskereurocat]

My aunt passed away and left me an estate benifit that has been included in a k-1 schedule on form 1041. She lived and died in Wisconsin. Before I got my benefit, taxes were taken out by Wisconsin, but I live in Texas and was wondering if any of this tax paid to Wisconsin is recoverable? If so, how would I go about recovering it?

[MichaelL1 · Accepted solution]

It is possible to get some or all of it back.  

You would, however, have to file a non-resident WI return.

The below is from the WI DOR web site. 

"Even if you do not have to file, if you had Wisconsin income tax withheld from your wages or you paid estimated tax, you should file a Wisconsin return since this is the only way to get a refund."

Source:  under #1, https://www.revenue.wi.gov/Pages/FAQS/pcs-npr.aspx#npr1

With your current program, you could add the State of WI to it.

If your WI gross income is below $2,000 no return is required unless you are filing to get a refund. 

[huskereurocat]

I paid for and downloaded the Wisconsin tax return, but I can't find anywhere that even mentions the schedule 2K-1 that I received. How do I enter this information and proceed with the recovery of the taxes paid to Wisconsin?

[MichaelL1]

The K-1 will get entered in the Federal return area under Income area.  Then the taxes withheld from WI get entered under Deductions and Credits (in Federal Area again) under Estimates and Other taxes paid, subheading - "Other Income taxes"   Note WI return should have only the K-1 income, nothing else as rest was not earned in WI.

[huskereurocat]

Somehow my income is being inflated by the K-1 amount so that my wife's Premium Tax Credit is based off of this inflated income figure and not what I really made as income. Thus we have an exorbitant amount of money to pay back to the federal government.
Also, why would the Premium Tax Credit be $0. I can only think that now TT is listing my income as the higher amount and therefore we don't qualify for a  PTC? Any thoughts.
EDIT: I just wanted to let you know as well that on the K-1 form the amount that my income is being raised by is the figure in box 5(Other portfolio and nonbusiness income). Is this considered income and should hit my taxable income? I would think that would make the inheritance, at least, partially taxable. Which to everything that my wife and I have read should not be the case.

[MichaelL1]

Inheritance is not taxable income, however, you should check with the Estate as it appears there are some sizable gains on sales after the date of death.

[huskereurocat]

I understand and thank you very much!