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!
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.
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.
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.
Also, as I am filing NJ state tax return for my partnership LLC, will I be required to file NJ state non-resident tax form for my personal tax filing (NJ-1040NR)?
If you are not a New Jersey resident and you receive income from a New Jersey partnership you will have to file a New Jersey non-resident personal tax return.
The income was received by PA partnership LLC and I am already filing NJ state tax return for non resident partnership LLC. I just wanted to make sure I need to file NJ state non resident income tax for personal income tax as well. Can you please confirm that? Thank you!
It depends if your income from NJ from all sources is more than $10,000 (single/married filing separate) or $20,000 (married filing joint/head of household/qualifying widow).