I am a limited partner in a New York partnership that has about 30 partners. I am a resident of California. The partnership filed two state returns, one in New York and one in Pennsylvania. All partnership operations are in New York. The sole reason for the partnership filing a Pennsylvania return is because one of the other limited partners is a resident of Pennsylvania. Namely, by Pennsylvania state tax rules, the partnership is obligated to file in Pennsylvania solely because it has a partner who is a resident of that state. See https://us.aicpa.org/content/dam/aicpa/advocacy/state/downloadabledocuments/aicpa-update-on-state-pa... .
Partnership has already done its filings, and I am now preparing my individual tax return, federal and state. In addition to reporting the partnership on my federal return, I already know that I need to file a resident California and a non-resident New York state tax return. Sole reason for filing in New York is to report this partnership.
The question is: Do I need to file a non-resident Pennsylvania state tax return? And if yes, how exactly should the partnership income be split between the two states (New York and Pennsylvania). Partnership had no operations in Pennsylvania, only in New York.
The partnership issued me a federal form K-1. They also issued me a New York state form (
"New York Partner's Schedule K-1 IT 204-IP"), and a Pennsylvania state form ("PA-20S/PA-65 Schedule NRK-1 (08-23)"), but it is unclear if they did it to accommodate that resident Pennsylvania partner, or is it meant for all partners.
I already contacted the partnership. They confirmed that the partnership filed in NY and PA, but they can't provide me with tax advice.
