All state income taxes paid are entered in the federal return so that they can be included in federal itemized deductions. TT/States pick up what belongs to them from the federal return.
State income taxes paid for you should be on the federal 1120S K-1 Box 13 Code S, Other deductions. When you enter a Code S amount you are taken to where you enter the detail(s). One of those is State income tax withheld. You would enter the state ID, NC in your case, and the $$. TT/NC picks it up from there.
Business K-1 state taxes are NOT deductible on Fed Form Schedule A, Line 5--State Income Taxes(only NON business state taxes).
True??
I received a form 1065 K-1 for a LLC that I own.
Attached is a D-403 NC K-1. On that form on line 7 they show an amount of tax paid on my behalf.
How do I enter this deduction either into my federal of my NC taxes.
I am consider a non-resident of NC so the entire amount in line 7 should be refundable.
thanks
curt
Even if you are not a resident of North Carolina, income from North Carolina sources would be taxable in North Carolina. That is why the company paid the tax, so I don't believe it is refundable.
I have this exact NC situation this year. How did you resolve it last year? Thanks!.
TG - I wish i had a good answer for you. I think I did an over ride, which caused difficulties in electronic filing. I wish TT would provide some concrete advice. This year, I will be checking out how to enter the company K-1 with a "state allocation" in the federal form, hoping that will carry through better to the states. However, I wasn't able to do this successfully last year.
Let me know if you hit a breakthrough.
I contacted TT for some help. The only way to input the p'ship paid tax is to go into Forms mode (upper right hand corner on the screen). Then scroll down the forms list to the NC D-400. Click on that. Go down to the box for Line 21c worksheet. Enter the tax and income amount. The tax will appear below that, on line 21c. Go back into Step-by-Step mode.
They obviously need to create an input line for the NC K-1 for this somewhere in the NC state section.