LLP K-1 Local Tax

Forum|Forum|1 year ago
March 9, 2025
1 reply
0 views

I have question regarding K-1 (Form 1065) for a LLP business. The K-1 includes a worksheet for local city tax paid for on behalf of my share of the partnership. Where do I record the local tax within the Turbotax K-1 section in order to capitalize on the deduction?

I am using 2024 Turbotax Premier.

Thanks

MindyB

It sounds like this amount paid on your behalf was the LLP filing a composite return, and paying your share of tax. This is a return of capital and not a tax deduction for the LLP.

In order for you to take the deduction (subject to the $10,000 state and local tax maximum), instead of reporting it on the K-1 entry, you can enter your share in the Deductions & Credits section of your personal tax return.

Navigate to Deductions & Credits > Estimates and Other Taxes Paid >Income Taxes Paid > Start or Revisit
Next, choose Other Income Taxes Paid in 2024 > Withholding not already entered on a W-2 or 1099 > Start or Revisit
Enter the amount in the Locality withholdings section