Why isn't Oklahoma tax withheld on K-1 or 500-B not showing up as tax withheld on Form 512-S

[JGCOCPA]

Hello!

I am working on a multistate s-corp return (tax year 2024) where they receive a K-1 from a partnership. For various states, the partnership withholds taxes including the state of Oklahoma. I made an entry in Screen 49.044 to reflect the 500-B received and saw the note that says "Income amounts and foreign tax paid however, do not carry to the tax return and must be entered in the respective input screens to which the income or credit applies." If I go to screen 24 where I reported the income activity for the K-1 received, there are places I can enter withholding received for other states, but NOTHING for Oklahoma. When I go to the Form 512-S (the Oklahoma s-corp return form) and use the Jump to Input function, it takes me to the State Schedule K-1 screen to each individual s-corp shareholder K-1 and the Royalty Withholding field, which seems incorrect to me.

In prior year tax returns, there was a place where the K-1 income was reported where you could report taxes paid/withheld on the various state K-1s, which from what I can find no longer exists.

According to Form 512-S, I cannot file paper, which was the recommendation I received when I called tech support. Is there something else I can do to make sure we are getting credit for the taxes withheld on the K-1 received? I at the very least plan to attach the 500-B for the Oklahoma withholding and create a statement/note to the return, but any additional advice would be greatly appreciated and would save me from tearing more of my hair out.

Thanks!

[PhoebeRoberts]

Wow, that is super broken. I agree with you that no entries anywhere produce the ideal presentation. 

The OTC will totally accept and process a paper-filed 512-S, without any issues or repercussions. I usually put in a sheet with an explanation of why the return couldn't be e-filed, but it's not technically required.

If it were me, I'd try doing the state K-1 overrides using the Royalty Withholding field, and attach a copy of the 500-B to the Oklahoma e-file, in addition to making the 49.044 entries, and figuring the OTC will figure it out. Worst case scenario, you email the OTC practitioner email address in response to a notice, explain what you did, and ask them to fix it on their end. The OTC does a good job of handling email inquiries.

[JGCOCPA]

Thanks PhoebeRoberts for your response! Your advice is extremely helpful and I am glad to hear that the OTC practitioner email address is responsive to these situations. Have a wonderful day!