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New Member
posted Apr 3, 2022 9:30:18 AM

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.

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3 Replies
Expert Alumni
Apr 3, 2022 11:30:22 AM

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.

New Member
Apr 6, 2022 9:51:22 AM

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.

Expert Alumni
Apr 7, 2022 9:06:53 AM

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