Question

Taxes paid by partnership on my behalf

Forum|Forum|6 years ago
May 11, 2020
1 reply
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I am a WI. resident and a limited partner in a NY Limited Partnership. The NY Limited Partnership paid Federal and state (CA, MA, NY, IL, and NY) on my behalf as part of composite returns. I tried to enter as Item W in Box 13 on the K-1, but TT did not give me the option to enter Federal taxes paid, and it only allowed me to enter state taxes for one state. How do I report those in TT?

Carl11_2

Employee

As you know, you must complete the federal return first, before you can start any state tax return. So you will deal with state taxes when you get to the state tax return those taxes were paid for, and not before. It's also extremely important that you save your *resident* state tax return for *last*. That way, if your resident state has reciprical tax agreements with any of the other states you're dealing with, the program will be able to "correctly" take that into account so you're not double-taxed across the different states.

So pay attention to detail as you work through each state. Things are not the same across states so I have no way of knowing what specific screens you will have to deal with on any one specific state. So I stress that you pay attention to the small print on every single screen, in case you deal with K-1 data manually/separately with any or all the state returns you're dealing with.