K1 non resident

Forum|Forum|5 years ago
April 21, 2021
2 replies
24 views

I have w2 income from pennsylvania.

I have a rental property in pennsylvania.

I live in New Jersey.

I was a passive partner in a house flip that was done in New Jersey. The income from flip was from New Jersey.

I have to file in 2 states NJ and PA.

When i try to file the taxes using turbotax desktop-- it says

its ineligible to be E-filed in PA.

as federal k1 cannot be used to prepare E-filed returns in Pennsylvania. They say i need to print it and file it for Pennsylvania.

My confusion is that the k1 was from new jersey. Why should it even affect the Pennsylvania return.

TurboTax Home & Biz Windows

DawnC

Level 15

It shouldn't. I would go back through the federal return and make sure it is set-up correctly in the personal information section and also go back over the K-1 entry. You should show as a full-year of NJ and list PA in the Other State Income section. This generates a nonresident tax return for PA.

Prepare - or review the nonresident return first. Make sure it only reports your rental property activity. It seems like the K-1 has been allocated to PA instead of NJ. If you have given your employer Form REV-420, your wages are not taxed by PA.

The NJ return will show all of your income (wages, rental, and K-1) and should show a credit for any taxes you paid to PA, but there should be no reference to the K-1 on your PA nonresident return.

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