How to enter income and taxes paid via composite return

Forum|Forum|4 years ago
September 28, 2021
1 reply
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How do you enter and take credit for taxes paid via composite return on NJ return. Do you need to file and report the k-1 and file in the applicable other states, or just complete the credit for taxes paid to other jurisdictions on the NJ return

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Best answer by dascpa

To get credit for taxes paid on the Federal return, go to Tax Payments Worksheet, line 24 Other. Enter the taxes paid and the state. If needed, created a supporting worksheet for multiple payments. Typically this won't matter as the taxpayer is over the $10k SALT limit but I still enter it.

On the resident state return go to the Credit for Taxes Paid to Another State form. In MD it's Form 502CR. List the taxes paid and the taxable income from the other state. In MD we're required to attach the other state return but there is none. So I attach the K-1 copy to show the income and the taxes paid.

With this method never had a problem.

dascpaAnswer

Level 11

To get credit for taxes paid on the Federal return, go to Tax Payments Worksheet, line 24 Other. Enter the taxes paid and the state. If needed, created a supporting worksheet for multiple payments. Typically this won't matter as the taxpayer is over the $10k SALT limit but I still enter it.

On the resident state return go to the Credit for Taxes Paid to Another State form. In MD it's Form 502CR. List the taxes paid and the taxable income from the other state. In MD we're required to attach the other state return but there is none. So I attach the K-1 copy to show the income and the taxes paid.

With this method never had a problem.

P

purple414Author

Level 2

Thanks. That is what i first started to do, but started to doubt myself.

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