When I enter my Indiana K-1, it creates an error on Schedule IN-W (offsetting negative state tax withholding). I re-entered K-1. Same result. How do I get this fixed?

[jdragoo]

The K-1 is from an Indiana S-Corp, which shows withholding for state tax already paid for 2022.  The TurboTax software offsets the amount entered from the K-1 with a negative offsetting entry, then flags it as an error, when I check my state tax return.

[BrittanyS]

It would be helpful to have a TurboTax token.  The token provides a sanitized version of your return.  We will be able to see the numbers but not any personal information such as your name, SSN, or address.  

If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on your screen and select Online. 

1. Scroll down and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number. 

Reply to this thread with your Token number. 

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

[jdragoo]

Token number 1111501

[BrittanyS]

It appears the state withholdings are being duplicated in the state return under K-1.   To fix this error, follow these steps in TurboTax Desktop:

1.  Click Forms in the upper right-hand corner
2. Scroll down to Indiana Forms and click on SCH IN K-1 Worksheet
3. Scroll down to line 11 and delete the entry

@jdragoo 

[jdragoo]

I am using TurboTax online.  Where do I find the forms in this version of TurboTax?

[JamesG1]

In TurboTax Online, follow these steps in the Indiana state tax return:

• Select Edit to the right of Other Situations.
• Under Other forms, select Start / Revisit to the right of Schedule IN K-1 Information.
• At the screen Schedule IN K-1 Summary, click Edit to the right of the S-Corp K-1.
• At the screen Schedule IN K-1 Information, scroll down to line 11 or line 13 for state or county tax withheld.
• Click Continue.

@jdragoo 

[annAtRedTailLodge]

I'm having a similar issue on a k-1 for a partnership. I cannot delete the offsetting negative line. In the fix-errors, it says that the state income tax withheld on line 11 must also be entered on the Federal Schedule K-1. But for the life of me, I cannot find where the state income tax withholding should be on the Federal Schedule K-1 and it does not appear on the Federal K-1 sent to me by the partnership. There is a place for the federal tax withholding on a federal K-1 for 2022, but not seeing a place for state withholding on a federal k-1.

[jdragoo]

I have confirmed that the Indiana K-1 information entered is correct, including the state tax withheld on Line 11.  I have also deleted and re-entered the K-1 to make certain that no extraneous entries occurred.

When I check my state return, I get an error saying I should have entered the state tax withheld on my Federal K-1, also.  However, there is not state withholding reported on my Federal K-1.

Also, the TurboTax software is creating an offsetting negative entry on Line 2 of Sch IN-W, right after my state tax withholding on Line 1.  I do not enter Sch IN-W, and cannot "correct" it.

I'm still at a loss as to how to correct this error and complete my state tax return.

[jdragoo]

Sounds like the exact problem I am having with a state K-1 showing withholding.  The state withholding is not reported on my Federal K-1.  TurboTax insists on generating a negative offsetting entry for my state tax withheld, then gives me an error because of it.

I'm still looking for an answer.

[jdragoo]

I received a response from DanaB27 to another thread where I posed the same question another way.  The suggested fix from DanaB27 worked for me.

Basically, it involved two steps.  First, I edited my Federal K-1 and inserted the state withholding on Line 17 with a code of "AD".  Then I supplied the additional information that this was "state tax withholding."  Secondly, I also had to report the state withholding on my Federal return as "addition withholding not reported elsewhere."

For more detail, hopefully you can find the actual reply from DanaB27 to my other question.

Good luck.

[annAtRedTailLodge]

I finally figured this out. In TurboTax Premier, I went to "Federal- > Deductions & Credits -> Other Income Taxes -> Withholding not already entered on a W-2 or 1099" and added the amount withheld for the state of my partnership K-1.