Schedule K1

If the Schedule K-1 packet you received includes information about states where the partnership generates income, you may need to file nonresident state tax returns for those states to report the income. Generally, you must file a nonresident return when earning income from sources in states where you do not live, such as:

• Out-of-state rental income, gambling winnings, or property sale profits
• S Corporation or partnership income
• Beneficiary income from a trust or estate
• Incorrect state tax withholding by your employer

To report the federal K-1, enter it on your federal return and indicate in the "Other State Income" section of TurboTax that you earned money in other states. TurboTax will transfer the K-1 information to each state return, where you can make any necessary state-specific adjustments.

Complete nonresident state returns before filing your resident state return to ensure you receive credit for taxes paid to nonresident states. Before filing, review or print your returns to confirm income isn’t duplicated across state returns.

*Note: Some entities may file state returns on your behalf.  That information will be noted in the Schedule K-1 packet information.  If that is the case, then they are informational and not reported in your individual return.

Yes, if you received state-specific Schedule K-1s, you may need to file nonresident state tax returns depending on the source and amount of income reported in each state.

You generally need to file a nonresident state return if:

• The K-1 shows income sourced to that state, and
• The income exceeds the state’s filing threshold.

You should check the tax rules for each state listed on your schedules. Some states require you to file a non-resident return if you have even a single dollar of income from that state. Others have a minimum income threshold (e.g., $1,000 or more) that you must meet before a filing is required. If the K-1 shows losses or minimal income, you may not need to file in that state.

Some states allow composite filing, where the partnership files a single return on behalf of all nonresident partners. If your partnership did this:

• You may not need to file individually in that state.
• Check your K-1 or contact the partnership to confirm.

On your resident state return, you'll get a credit for that payment to the non-resident states, so you're not paying tax on the same income twice. 

@user17577204458 Thanks for the question!!