K1 non resident

[hdurina84]

Hi

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.

[DawnC]

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.  

[hdurina84]

Hi

i looked at both the NJ and PA returns.

The k1 has been correctly alloted to NJ only--

in PA-- it asks me to list all income as zero which I did.

But its still not able to file it electronically because of this K1 which has nothing to do with PA.