TurboTax Business: How do I issue a State K1 with a pro-rata share of what's on Fed K-1?

Forum|Forum|3 years ago
April 12, 2023
1 reply
0 views

I moved from TX to NC.

I issued my Fed K1 showing all my income for the year. As an example let's say $10,000.
I moved mid year to NC, so I'm thinking the NC-K1 that TurboTax generates should allocate only a portion of my Fed K-1 to the North Carolina K1.

The problem is, the "share of income" shown on my NC K1 is 100% of my fed income or $10,000.

If I only earned a portion of that S-corp income while in NC, shouldn't the "share of income" on the NC K1 be less?

The interview questions ask me how much in Gross Revenue was made total vs. what was made in NC, but that percentage (Apportionment factor) is only used to calculate the "net worth" line (which it apportions correctly) and not the "share of income" line (which it apportions as 100% even thought I lived only a short time in NC.

I'm utterly confused.

TurboTax Business Windows

PatriciaV

Employee

TurboTax Business prepares one State K-1 for each partner. There is no option to split the partner's income between two states.

However, you can enter two Schedule K-1s for your personal (1040) return. Manually allocate the income from the K-1 to each state and enter them separately. Since you can choose the description for a K-1, add the state abbreviation to the end of the company name. These entries will be combined on your federal return, so all K-1 income will be reported.

When you work through the NC state interview, exclude the income from the K-1 for Texas. (Texas has no income tax, which simplifies things.)

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"