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info17
New Member

How do I assign a K-1 as income from another state?

I do not live in Iowa, but am a limited partner in a business there. How do I assign the whole K-1 to Iowa, so that I don't pay taxes on it in the state I live in?

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6 Replies
DawnC0
Intuit Alumni

How do I assign a K-1 as income from another state?

In the Personal Info section, you will indicate that you have income from another state on your return, see image attached.  Adding this to the federal return will trigger a non-resident return for IA.  When you do the state returns for IA and your home state, you will be given the opportunity to allocate your income between states.  Do the Iowa return first, allocate all of the K-1 income to IA and then on your home state return and allocate $0.  

Marcie123
New Member

How do I assign a K-1 as income from another state?

I didn’t do my CA Non-resident ITR FIRST.  I calculated my AZ ITR first.  Now how do I allocate my 2 k-1s to California?

How do I assign a K-1 as income from another state?

What if the other state does not have income tax? How do you allocate the income of the k-1 to that state?

ErnieS0
Expert Alumni

How do I assign a K-1 as income from another state?

You do not have to allocate income to a state that does not have an income tax @TooMuchTax2. Skip that state.

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How do I assign a K-1 as income from another state?

Now, all the income is allocated  to the state with income tax. How do I allocate only the income from that state in its tax return?

GeorgeM777
Expert Alumni

How do I assign a K-1 as income from another state?

It would help us if we know which state(s) returns you are preparing.  After completing your federal return, TurboTax recommends preparing your non-resident state first.   Because it appears you need to allocate a portion of your total income to the state that has an income tax, TurboTax will have a screen where you can enter the amount to allocate.  Follow-up with your state information.   

 

@TooMuchTax2

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