How do I record LLC partnership payments for state taxes in the 1120-S ProConnect return? TP is a CA resident. States are CA, CO, MA, MI, PA, UT, VA, WI. TIA

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ProConnect does not allow me to apportion income to state source or add state tax payments by the partnership.

ProConnect Tax

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sjrcpa

Level 15

Your S Corp has a K-1 from a partnership?

Are you looking to enter PTET shown on the 1065 K-1?

Nonresident withholding tax shown on the 1065 K-1?

And allocate or apportion the 1065 K-1 income to the various states?

What states are on the 1065 K-1?

Something else?

This will probably require a bunch of overrides. Passthroughs to passthroughs is not a strong point for Intuit.

The more I know the more I don’t know.

S

SoCalCPA2651Author

Level 2

The K-l is from a TX LLC treated as a partnership to an CA S-Corp partner (California resident owner).

This is not Pass through entity tax (PTET).

Non Resident withholding is shown on the K-1s. All state K-1's allocate the income to the various states.

TP is a California S-Corp. K-1 States are CO, MA, MN, PA, VA, WI, UT.

I think I am going to need to use the state miscellaneous apportionment screen - ProConnect only allows K-1 income to be stated for a few states in the main K-1 screen. CA taxes "worldwide" income.

PhoebeRoberts

Intuit Community Champion

Not all states permit allocation, as opposed to apportionment. Even though the 1065 K-1 shows your theoretical state-source income, you get to recalculate it using your own factors plus your share of the 1065's factors for a bunch of states, including UT. You pretty much have to look at each state's filing instructions to see how to calculate state-source income.

Even for states that have you pick up just the allocated income from a pass-through, the K-1 input screen is not always the place it gets input.

PhoebeRoberts

Intuit Community Champion

I know how to do Utah. Apportionment (using the combined factors of the 1120S and the 1065) is done in what Lacerte called Screen 50.131. In ProConnect, it would be under State & Local, Apportionment, Utah. Withholding goes in Schedule K, Passthrough K-1s (same place you'd normally do the K-1 input), Utah Credits and Withholding (way down at the very bottom), under TC-250. You'll have to pick the type of withholding you have from the drop-down.

You need to have an Excel file to tell you what you expect the right presentation and the right answer to be, and then override judiciously until you get there. It's possible there will be one or more states that can't be gotten close enough to e-file, and you'll need to swap out pages to create an accurate paper return.

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