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Do I need to file a state return for PTP K-1 with Ordinary Business Income and Net Taxable Income Loss?

Love2Cruise
Level 3

I'm getting conflicting answers. Some of the state websites say to file, even with a loss, but a CPA told me that filing wasn't necessary if all of the states had a Net Taxable Income Loss. In the event that I do, can I generate the proper returns in ProSeries Basic, or will I have to prepare in Professional? I'm praying I can do it in Basic because my client has a lot of carryforward information that I REALLY don't want to have to manually input in Professional.

I just want to be sure as I don't want any issues for my client. 

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Skylane
Level 8
Level 8

I don’t know about PS basic.

I’m assuming this is one K1 with a bunch of states. If so, and there is no taxable income and no tax to a particular state i probably wouldn’t bother but Explain and offer the client the choice. Save the fees for the preparation of additional states with the understanding that if he gets a letter from a nonresident state you’d have to file. Either way, no tax is no tax.

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Skylane
Level 8
Level 8

I don’t know about PS basic.

I’m assuming this is one K1 with a bunch of states. If so, and there is no taxable income and no tax to a particular state i probably wouldn’t bother but Explain and offer the client the choice. Save the fees for the preparation of additional states with the understanding that if he gets a letter from a nonresident state you’d have to file. Either way, no tax is no tax.

View solution in original post

Love2Cruise
Level 3

Thank you Skylane. Good advice!!! 

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