K-1s With Non-Resident Share Of Income & Ded

[jhmckinstry]

Hello all!

I have a client that is a partner in a partnership which issued a K-1 (simple enough).  However, there are also 16 states that have forms for partners share of income for each state.  I am having a hard time getting the states information added correctly.  His home state is PA.  The first state that I have information for is AL.  I have tried unsuccessfully to enter the information and get it to flow to the PA return.  If I am not mistaken, it should flow to the PA-40-GL.

Here are the steps that I have taken:

• Added the AL state return.
• On the K-1 input screen, I added the AL guaranteed payment amount and the distribution payment amount that he had for AL (from form 65).
• Added the composite payment made on the partner's behalf in the Other State Tax Credit for AL.

Would anyone be able to give me some guidance for this?  I know that it is probably something easy because it is my first time doing this, but I would really appreciate any help that you can give me.

Thanks as always,

Jeff

[sjrcpa · Accepted solution]

Federal K-1 is total income and deductions. State amounts may differ because of different state rules and adjustments.

Since your client is a PA resident, all you need to enter for AL is the income taxed on the composite AL return and the tax paid on the composite return so client can get a PA credit for tax paid to AL.

[jhmckinstry]

That did it!  I was trying to make it more complicated than it needed to.

Thank you so much for your help.

Jeff

[sjrcpa]

You're welcome.