Question

K-1 for Non-Resident State

Forum|Forum|2 years ago
August 22, 2023
1 reply
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I am a full-time resident of California, but have K-1 income and K-1 losses from a Limited Partnership in New York. Do I need to file taxes in New York State as well as California and Federal? If so, how do I tell California that I'm paying taxes on that income in New York (or, conversely, if I report as income on my California return, how do I tell New York that I paid taxes on it in New York)?

Also, if I DO have to file a New York return, how do I tell them that I paid state income tax for my non-K-1 income in California so they don't charge me taxes in New York for that income?

I'm using TurboTax Home and Business, but don't want to pay for 2 States if I can avoid it!

T

TomD8

Employee

Non-residents of New York are subject to NY income tax on NY-source income. This web reference details what is considered to be NY-source income:

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm

Your home state of CA can tax ALL your income, regardless of its source.

If you are subject to NY income tax, you must file a non-resident NY tax return in addition to your home state CA tax return. CA will give you a credit for the taxes paid to NY on any income that is taxed by both states, so in effect you won't be double-taxed. With TurboTax, you should complete your non-resident tax return before your home state tax return. The program will then calculate and apply your credit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.