I entered a non-resident K-1 in the Indiana tax data which I entered a tax withheld amount. Why does Turbotax not pick it up and apply to my taxes due?

[mac4263573]

I live in TN but have a K-1 from IN so I am trying to file a Indiana State form.  I entered the K-1 data including IN State Tax Withheld.  At the end of it all TurboTax did not apply this amount to my taxes due.  Now what? 

[IreneS]

The Indiana tax withheld on your K-1 should flow to the IT-40PNR, line 14.  We have reported this issue to our Developers and apologize for any inconvenience.

You can manually enter the amount of IN tax withheld on the K-1 by following these steps:

TurboTax desktop version (CD/Download)

1. Go into Forms Mode by clicking on the Forms icon in the blue bar at the top right of your screen.  [See Screenshot #1, below.]
   
2. Click on the Open Forms icon at the top of the Forms in My Return list.  [Screenshot #2]
   
3. Click on the plus (+) sign next to Indiana to expand the list.
4. Click on the plus (+) sign next to Form IT-40 (even though you're doing a nonresident return).
   
5. Double click on Tax Payments Worksheet to open it.  [Screenshot #3]
6. On the Tax Payments Worksheet, enter the amount of state and/or county withholding on line 13.  [Screenshot #4]
7. This amount will then flow to the IT-40PNR, line 14.
8. To return to the interview, click on the Step-by-Step icon in the blue bar at the top right of your screen.  [Screenshot #5]

TurboTax Online

1. Click on Federal Taxes >  Deductions & Credits.  [In TT Self-Employed:  Personal > Deductions & Credits]
2. In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Other Income Taxes. 
3. On the Other Income Taxes screen, in the Other Income Taxes Paid in 2016 section, click on the Start/Revisit box next to Withholding not already entered on a W-2 or 1099.
4. Enter your payment(s) on the next screen, Other Withholding Not Already Entered.

[lrbowman34]

This still seems to be an issue.  Are the steps above the best solution for fixing it?  Or was there an update to the TurboTax premium to fix the issue?

[EKS2]

This problem seems to be happening in 2020 as well.  Is it ever going to be fixed?  Can we just override and enter it ourselves on Schedule F (Lines 1 and 2) of IT-PNR?

[Irene2805]

State tax withheld is reported in box 13 of the K-1 (partnership) with Code W, or box 12 of the K-1 (S-Corp) with Code S.  If you enter in on the K-1 in the 1040, it will flow to the Tax Payments Worksheet and then to the IN return.

If, however, you have local taxes withheld, they have to be entered manually in the IN return.

If you are using the CD/Download version of TurboTax, you can go into Forms Mode and enter the amount of county taxes withheld on line 13 of the Indiana Tax Payments Worksheet.

@EKS2

[cwesterbeek]

I am having this same issue with TurboTax 2021.  I am a MIchigna resident with a State K-1 for Indiana and am filing a non-resident return in Indiana.  In the Step-by-Step there is zero question or consideration for K-1 which is unhelpful.

I went to Forms and entered the amount of withholding on line 13 as described, so this schedule appears correct.  However, the withholding from my K-1 does not flow through to the IT40RNR tax form.  I am also unable to enter any withholding directly on the IT40RNR.  I am not 

Thanks,

Chris

[knownoise]

I am filing 2022 return and have a similar question with Indiana K1.

I am a full time California resident. I received distribution $X from an Indiana partnership with passive income. They withheld both Indiana state tax $Y and county tax $Z.

I entered $X, $Y, $Z in Indiana->Other situations->Schedule IN K1 (IT-20S/IT-65) Information. 

I also entered $X, $Z in Federal->Deductions and Credits->Estimates and Other Taxes Paid->Income Taxes Paid->Withholding not already entered on W-2 or 1099.

In Indiana->General Info->Other Income Taxed by Indiana, do I need to enter $X again in Partnership Income or (Loss) Indiana portion?

If I enter $X there, I get a $Z refund, meaning I only need to pay Indiana state tax (which I already paid).

If I don't enter $X there, I get a $Y+$Z refund, meaning I don't need to pay Indiana state tax?

[DaveF1006]

Let's see if we can get you your indiana tax withheld back with jeopardizing your entire return. First of all, undo everything you just did so we can restore your return back to its original condition.

Now go to Federal->Deductions and Credits->Estimates and Other Taxes Paid>estimates. Go to State estimated taxes for 2022.  Click the drop-down under state and select indiana and report the tax that was withheld here in one of these 4 quarters. You will now receive an Indiana Tax credit for the tax that was withheld.

Make sure before you perform the action I described, just be sure that you are not already receiving the tax credit as a payment elsewhere in your Indiana state return.