K-1s for Multiple States

Forum|Forum|6 years ago
March 4, 2020
4 replies
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I am a shareholder in a s-corp located in Illinois. I live in Iowa. In past years, I have received a K-1 for my federal return and my Illinois return. Due to growth, this year, the s-corp sent a K-1 for my federal return and K-1s for the following states: Illinois, Iowa, and Wisconsin.

I had no issues with with the Federal tax return or the Illinois tax return with regards to the K-1 since this is consistent with what I have done for previous tax years. I have started my Iowa tax return, however, I can't figure out to add the Iowa K-1 to my Iowa tax return since this hasn't been necessary in previous tax years.

Also, do I also need to file in Wisconsin now that I am receiving a K-1 for that state as well?

I am using TurboTax Deluxe version and have a federal return, an Iowa return, and an Illinois return in progress for TY2019.

DawnC

Employee

If the Schedule K-1 packet you received included additional information about states where the partnership operates and generates income, you may need to report that income by filing non-resident returns in those states. Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in. Some examples are:

Out-of-state rental income, gambling winnings, or profits from property sales
S Corporation or partnership income
Beneficiary income from a trust or estate
If your employer withheld taxes for the wrong state

You should only have to enter the federal K-1 on your federal return and indicate in the personal section that you made money in other states (add Illinois and Wisconsin) to the ''Other State Income'' section. Detailed instructions for this step can be found here. TurboTax will transfer the K-1 information to each state return. Then when you go through the state returns, you will enter any adjustments/differences needed to report each state-specific K-1.

You should complete any nonresident returns (IL and WI) before you complete your resident Iowa return because IA will give you credit for any state taxes you may owe in the nonresident states. Print out or view your returns before filing to ensure you have not doubled up any K-1 income on your state returns.

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AmyJ50Author

Thank you!

When I look at the forms view for each state, I only see a K-1 in the Illinois return. Should I be seeing K-1’s in the Iowa return and the Wisconsin return?

There just doesn’t appear to be anywhere to put in the BAR and the All Source Modifications for Iowa.

In terms of the Wisconsin return, the s-corp paid the taxes on my behalf and I don’t see where to enter that information.

Usually, when I get stuck, I flip from EasyStep to the Forms view and just make sure the forms match what was sent to me but without an Iowa or Wisconsin K-1 form as part of the return, I am struggling to figure it out.

AmyJ50Author

Nevermind … I got it figured out and I am good to go! Thanks again!!

ThomasM125

@yashrohan In most states, you don't have to file a tax return unless your income in the state is above a minimum filing level. You would have to research each state's regulations on their filing requirements to be sure, but based on what you describe, you would not have to file out of state returns since you have no income to report in other states.

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TrdwT

I have a Schedule K-1 that provides a form for the Federal return and for 3 other non-resident states. However, for one non-resident state form, the totals of Net LT capital gain and other income is about the same as the values listed for the Federal return. So when I combine the taxable income of all three non-resident states, the total is +150% greater than the total taxable income on the Federal form. I realize that my resident state will reduce my state income taxes for taxes paid in other states, but the total of the non-resident states' "incomes" will exceed the Federal income (by+50%) on the same funds! Can someone help me with this "new" math?

bryakrek

Similar to the others above, my wife has K-1's to file in multiple states, and the K-1s will not be issued until September 2021. This year we are owed a federal tax refund and there is only a small loss associated with her shares on the K-1s. I've filed a federal extension and this automatically applies to most--but not all-- of the states for which she'll get K-1s.

My question is this-- for the states that don't automatically issue an extension, do we need to file a request for an extension even though we'll claim a small loss this year and have no actual income in those states? If so, how do we do this? The standard extension requests I've reviewed (DC, LA, NH, NY, & NJ) all request the personal income and state income tax withheld in their respective state. Since we didn't earn anything in these states, are owed a federal refund, and did not pay personal income tax in these other states, what do we put on these forms to request an extension?

Thanks in advance for any help here!

mikek753

How to know which extra States to buy for K-1 that lists many States?

I have in the K-1 about 10 States, this is private real estate fund that pass through income and gains, as well losses per each State.

Some States has minimum that doesn't need to be reported and in my K-1 I have less income then the minimum.

Other States have no income tax.

How to split income and gains per state that is part of Fed K-1? is it part of each none resident State? is there adjustment to copied from Fed numbers to each none resident State?

btw - I asked this question in new message topic, but it isn't visible

How to insert K-1 that has multiple States?

tnx

Mike9241

you can do the research yourself. go to each state's department of revenue website and look at the filing instructions for nonresidents. they will even have a phone number to call, if needed.