Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
Yes, you can claim credit in California for taxes paid to other states.
This eliminates so-called "double taxation"
Okay. Can I carry this credit forward if I don't use it in the current year?
No, it would not carry forward. You use it in the current year only
Okay, thank you. Now, in the documentation they sent me, it's hard to tell what they paid on my behalf to the states, as follows:
CO: they just show a "colorado source income " of $975. Nothing about withholding.
If they don't show withholding then you would file a return and pay the tax
I don't think so, because they told me that joining the composite return relieves me of the obligation to file a state return.
That's why I did it. Cheaper than paying our tax preparer.
Okay then no return is necessary
Illinois shows $260 "composite return payment" on $5,196 income apportioned to Illinois. I'm thinking this is tax.
But you do get credit for any state taxes and if you don't use it it doesn't carry forward
Yes, that sounds like tax
Kansas shows a tax of $1 identified as "taxes on or measured by income or fees or payment in lieu of income taxes"
But then they include a Form K-19 which shows $27 "Total Kansas Tax Withheld".
New Jersey's form says $41 is "nonresident Partner's share of NH Tax"
So I'm thinking I will add the following numbers:
Okay then you would take a credit for all of these on your CA return
Colorado $0 (I guess, maybe I need to check this. Does CO have an income tax?
Yes, they do have income tax but if there's none reflected on your K-1
then you didn't pay any
oops forgot South Carolina--$70 "Withholding tax for nonresident partner"
Yes add that in to
Okay, I think I've got it! Thank you so much for your help!