California resident with K-1 for Montana

[plawlor78]

Hi,

I've downloaded the Montatna state forms. How do I enter my K-1 information? My K-1 has information for Montana and Oregon.

[SharonD007]

Enter your K-1 on the Federal section and it will flow to the state return  Make sure that you entered that you had income in more than one state in the My Info section.

Review your answers on the Personal profile screen. 

1. Select your name under My Info
2. Select Revisit
3. Scroll through the screens to ensure that you have the correct answers for your state of residence
4. Scroll down to Other State Income and select Edit
5. Check your answer for Did you make money in any other states? Answer Yes, and indicate that you made money in another state.

After you complete your federal tax return and you move to the State Taxes sections, both your non-resident state and resident state returns will be listed.  Prepare your non-resident  tax return first. Depending upon the state you live in, you may get a credit on your resident tax return if you paid taxes on you non-resident return.

For additional information, refer to the TurboTax Help articles Do I have to file tax returns in more than one state?,  Why would I have to file a nonresident state return? and How do I file a nonresident state return?

To enter your K-1, follow the steps below:

1. Open TurboTax
2. Enter K-1 in the Search Bar, and select Jump to k-1 link
3. On the Schedules K-1 screen, select Yes
4. Select Yes, on the Did you receive any Schedules K-1? Screen
5. Select Start next to the type of K-1 that you have and enter the information.

If you are using TurboTax Desktop, review the TurboTax article Where do I enter a Schedule K-1 that I received?

[plawlor78]

Hi Sharon,

I prepared my resident state of California first. Do I need to do the non-resident state first? If so, how would I go back to fix that?

Also, does the Montana TurboTax state download support K-1s? I am not seeing the form or where to enter my Montana K-1 information.

Thanks,

Pat

[plawlor78]

@SharonD007, could you please answer my question above?

Also, can I have TurboTax use certain passive carryover losses from certain K-1s. Right now, it spreads it out over several K-1s. I'd like to use up the carryover losses from a particular K-1 that I expect to lose money from. 

[PatriciaV]

If you started your resident return first, go back and remove that state. Then complete your nonresident return before you start your resident return again.

You can delete your state return in TurboTax Online as long as you haven't paid yet.

Note: If your TurboTax navigation looks different from what’s described here, learn more.

1. Open or continue your return.
2. Select State Taxes from Tax Home.
3. On the Status of your state returns screen, select the trashcan icon next to your state, then select Delete.

If you’ve already paid your state fees, you can’t delete your return, but you can start over by selecting Start Over next to your state return on the Status of your state returns screen.

If you're using TurboTax for Desktop, open your return and go to File >> Remove State Return in the TurboTax menu at the top.

The federal Schedule K-1 that you entered will transfer to your state return (both states). Use the Montana K-1 to make adjustments under Partnership K-1 topic for income that Montana handles differently (same for Oregon and California). There is no import function for Schedule K-1.

Be sure to update your passive carryovers when entering the Federal K-1. Passive loss carryovers are applied to the income from that K-1, unless the investment closes. In that case, all passive losses are released to be applied to any other passive income.

[plawlor78]

Hi Patricia,

I'm using the desktop version of TurboTax and did start with my California return first. I had to enter a lot of information for California since it is my resident state. Can I just run through the California return again? Or do I really need to delete it and completely start over? That seems like a TurboTax bug if any change to a nonresident state tax return causes me to start over my resident state return.  

Also, I'm not seeing Partnership K-1 topic for income in the Montana. Can you confirm what I can search for so I can jump to the topic?

Lastly, I have K-1s from a few different partnerships with properties in different states. Oregon is on 3 different K-1s. For my federal taxes, it took carryover losses from each of my K-1s. When doing my Oregon state taxes, am only allowed carryover losses from K-1s that have Oregon properties? So I would need to delete carryover losses from non Oregon K-1s and potentially take more of the carryover losses than federal from my Oregon K-1s? Sorry if this is confusing.

[PatriciaV]

Yes, you can return to the California state interview after you complete your nonresident state returns. TurboTax will make the necessary adjustments based on changes to those returns.

Most states have a section for income that is treated differently. Look for business income, which should include income from Schedule K-1. (I don't have a Montana return to test this.)

Yes, carryovers follow the businesses that generated the losses in prior years. You'll need to adjust the carryovers for each nonresident state to match the source of the losses.

[plawlor78]

Thanks @PatriciaV. I'm still having trouble figuring out where to enter the carryover passive activity losses for Montana and Oregon. can you or someone else help with that? 

[RobertB4444]

Oregon follows the federal rules as far as passive loss carryover is concerned.  Make sure the current loss is entered and then you will track your carryover losses on form 8582.

Montana may require an adjustment to your basis in order to enter your losses.  You may want to contact whoever issued your K-1 to see if that basis adjustment is required in your case.

@plawlor78