How to enter or to reflect IT-2568 Estimated tax payment maed by NY Partnership on behalf of a NY nonresident partner ?

Forum|Forum|5 years ago
April 2, 2021
1 reply
33 views

I have one NY resident individual who is also a member of NY Partnership (LLC). Under NY tax law, a NY Partnership LLC or S Corp is required to make estimated tax payment on behalf of NY non-resident partners or shareholders, by using IT-2568 (vouchers).

Therefore, during 2020, the partnership (LLC) made 4 times of IT-2568 estimated tax payments "on behalf of" NY Non-resident partners.

In his individual tax return (IT-203 - Nonresident return), can he claim the estimated tax payments made by his partnership as "paid"? Or can't he claim the payment of estimated taxes made by his Partnership at all?

ProConnect doesn't have any section or line for this purpose. I am asking NYS directly, but so far, I haven't heard from them.
Does anyone someone know about IT-2568 and whether the paid amount on IT-2568 can be used for nonresident return as "estimated tax paid"?

ProConnect Tax

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Best answer by TylorValdez1

Thank you for your being helpful, which is really appreciated.

But, after entering Partnership's name and address, and EIN, there is still one critical diagnostic, which says:

Form 1099 MISC # 1: New York Business Rule R0509 states that the New York State withholding must be less than the total of lines 1-3, 5-8, 10, 13-15 (a & b). Please review and modify the input or the return will be rejected by the state.

I thought I am doing what you told me to do, yet, this diagnostic bothers me.

Would you tell me what's wrong with my entries or what else I should do?

Enter the ordinary income from the K-1 in box 3. The income amount will not flow to the return, yet will satisfy the diagnostic.

T

TylorValdez1

Level 6

Yes they can. You would enter the withholding in the 1099-Misc section under state information.

S

SunnySpringAuthor

Level 4

Thank you for responding to my question.

But, I am not sure why I should go into "1099-MISC section" when the client did not receive 1099 form from Partnership. He is a partner, and he receives only K-1.

Would you elaborate to explain "how" he can claim that he has paid estimated taxes, which were paid by his partnership?

I am sorry, but this is the first time I encounter with this situation.

T

TylorValdez1

Level 6

E-filed returns for the state of NY requires that state withholding on Passthrough K-1 be entered as 1099-Misc. You will have an issue with the state return if you use the field on the k-1 for credit for state estimates/withholding when you go to e-file.

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