PTET Indiana witholding to Indiana return

Forum|Forum|2 years ago
June 11, 2023
1 reply
0 views

Have PTET from partnership K-1. Getting error message on IT-65 Form IN-W stating withholding must be reported on federal K-1. Where do I report it on the federal K-1 in turbo tax

Rick19744

Employee

This area has many components to it and there are minimal facts. Here are some comments and links to hopefully help:

In general, the PTET is deducted at the federal level in arriving at ordinary income. So, yes, the message you are getting makes sense.
https://www.in.gov/dor/tax-forms/ptet/
https://www.in.gov/dor/tax-forms/ptet/faq/#Can_nonresident_partners_and_shareholders_residing_in_reverse_credit_states_be_included_on_the_composite_schedule_
Above are a couple links to hopefully answer some questions.
Additionally, there is an election that needs to be filed with Indiana. The link to that form is included in the link in the 2nd bullet.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

tshafer1Author

Rick,

Thank you for your reply. However, it did not address my question which pertains to the Turbotax software not the new Indiana law and its requirements which you were so kind to point out.

After entering the IIT-65 Form K-1 withholding values (PTET) information into the Turbotax Indiana IT-40 software, the Turbotax software is giving an error message stating the withholding must be reported in the Turbtax software on the federal K-1 (Form 1040). My question is where do I report the Indiana withholding values in the Turbotax Form 1040 software to eliminate the error message and have the withholding information from the IN K-1 flow to the Form IN-W which is required. Thanks