Where do I enter pass thru entity tax deduction on my federal return? The LLC I'm a part of paid the state taxes on the entity level, and that is supposed to be deductible but I can't find where to enter it.

[JamesG1]

Are the state taxes reported on a separate statement with your IRS Form K-1 (1065)?

Enter the payment at Federal / Deductions & Credits / Your tax breaks / Estimates and other taxes paid / Income taxes paid / Other income taxes paid in 2021 / Withholding not already entered on a W-2 or 1099.

Retain a record of the payment should the state tax authority question you at a later time.

[brian_r]

Yes, it's reported on a sperate form that came with the K1.

So I'm entering it in the federal withholdings box, right?

Just to clarify: I also entered this on my state tax form and got the deduction there, am I also allowed to deduct it on my federal return? I was told yes, but it seems like I'm getting credit for it twice.

[PatriciaV]

Yes, State Income taxes are deductible on your Federal income tax return. Follow the instructions above from Expert JamesG1 to report these taxes.