How do I get the withholding tax to allocate to the partners k-1's on a SC 1065 composite return?

Forum|Forum|4 years ago
August 20, 2021
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PATAX

Level 12

If it does not automatically flow through can you direct enter it?

D

DS20

Level 3

Lynncenter2,

If the Non-resident partner files an affidavit to timely file their composite return, then the partnership is exempt from withholding, and thus, there is nothing to report on the K-1 in terms of withholdings. It’s an either/or situation, if the NR partner is filing a composite return (or the entity is filing on their behalf), their taxes are paid on the composite return and you report it on their K-1 via the “partner is included in a composite return” checkbox. However, if their taxes are w/held and paid by the entity, then they would be reported on the K-1 withholding line, and the entity would provide the partner a 1099 misc.

Here’s a great resource for additional info on Withholdings on SC income:

https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/RP17-2.pdf

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