Partnership LLC State Filing Requirement

6 replies
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Hello!
I have a partnership LLC registered in PA. I have received an income with 1099-NEC form from another partnership LLC in NJ. Do I need to file state taxes for both PA and NJ for my partnership LLC state return? If so, will I be eligible to get credit for one of the states for the taxes paid in another? How should I manage this in Turbotax Business Desktop software? Thank you!

TurboTax Business Windows

PatriciaVAnswer

Alumni - Intuit

Yes, if the LLC earned income sourced in more than one state, the company will need to file a State income tax return in each state where the income was earned. Be sure to prepare the non-resident state first.

As you work through the state interviews, look for questions about taxes paid in another state and/or allocating the income to the specific state. TurboTax automatically transfers your federal return to each state, but you need to adjust the income so that you don't over-report.

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PatriciaVAnswer

Alumni - Intuit

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aas870Author

Level 3

Got it. Thank you so much for the response. So, in my case, I will do the NJ state (from where LLC got 1099-NEC) tax return first and then file for PA state (where LLC is registered) return, right? Thank you so much for the advice.