Entering tax withheld from a K-1 in ProConnect Tax

This article will help you enter state tax withheld or state estimate payments from a partnership or S-Corporation Schedule K-1.

Follow these steps for a partnership K-1:

1. Go to the Input Return ⮕ Income  ⮕ Passthrough K-1s. ⮕ Partnership Info (1065 K-1).
2. Select the Lines 11–20 tab.
3. Scroll down to the section Line 15 - Credits and Withholding.
4. Enter the tax withheld in either Credit for state estimates/withholding paid on or before 12/31/YY or Credit for state estimates/withholding paid after 12/31/YY.

Follow these steps for an S-Corp K-1:

1. Go to the Input Return ⮕ Income ⮕ Passthrough K-1s. ⮕ S-Corp Info (1120S K-1).
2. Select the Lines 11–17 tab.
3. Scroll down to the section Line 13 - Credits and Withholding.
4. Enter the tax withheld in either Credit for state estimates/withholding paid on or before 12/31/YY or Credit for state estimates/withholding paid after 12/31/YY.

If entering the withholding in Credit for state estimates/withholding paid on or before 12/31/YY the amount will be carried to the federal Schedule A if itemizing deductions. 

If entering in Credit for state estimates/withholding paid after 12/31/YY the amount won't be deducted as an itemized deduction on schedule A, since the payment was made after the end of the year. This will apply to most states that have withholding on a partnership or S-Corp return.

Follow these steps for an Estate or Trust K-1:

• Go to the Input Return ⮕ Income ⮕ Passthrough K-1s. ⮕ Estate or Trust Info (1041 K-1)
• Select the Lines 9-14 tab
• Scroll down to the Line 13 - Credits section.
• Enter the amount paid in Credit for state estimates/withholding paid on or before 12/31/XX.

Related topics

• Sourcing income for a multi-state passthrough K-1 in ProConnect Tax
• How to create a multi-state return
• How to enter part-year or nonresident states