Tax Payment Worksheet double counting K-1 credits?

[GaryD5]

Schedule K-1 Line 13 has two Credits for Estimated Taxes, $2203 and $842, totaling $3045.  Both have code 'A' although the $2203 was Federal withholding, and the $842 was MN State withholding.

The Tax Payment Worksheet seems to count these credits twice.  Am I missing something?

Line 7 - Credits by Estates and Trusts - shows $3045 which is then included in Line 8.  Note that not all of the $3045 was intended to be Federal, but the entire $3045 is shown under the Federal column.  If I double click on the $3045 it tells me the source is the K-1, and I presume it is Line 13.

Then Line 18a shows Other Withholding $2203 correctly under Federal, $842 correctly under State (MN). 

Line 20 Total Tax Payments appears to be overstating my Federal payments by $3045.  I am wondering if I should manually zero out Line 7 to fix this?

[AnnetteB6 · Accepted solution]

No, you should not override the amount on line 7 to make it zero.  This would void your TurboTax Accurate Calculation Guarantee.

Instead, since the amount is reported correctly on line 18a divided between Federal and state withholdings, the better solution would be to leave off the amounts entered in the K-1 line 13 with code 'A'.  

In the unlikely event that the IRS was to question why there was a discrepancy between the K-1 they received and what you reported, then you have documentation to show that the K-1 was incorrect and what you reported showed the withholdings attributed to the correct taxing authorities (divided between Federal and state).

[GaryD5]

Very good, thank you.  Perhaps I entered the withholding separately from the K-1.