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Level 5
March 12, 2023

Idaho Form 39R Credit for taxes paid to another state

  • March 12, 2023
  • 1 reply
  • 8 views

Have a full year ID resident that has investments in out of state K-1s for partnerships  There are PTE payments on the K-1s applicable to the the other state.  Lacerte is calculating the ID credit based on NET tax after the PTE from the other state.  It looks like the Form 39R instructions also say the credit for taxes paid to another state are net of all credits.  Has anyone run into this issue?

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    1 reply

    sjrcpa
    Level 15
    March 12, 2023

    . Some other states do that, too.

    The more I know the more I don’t know.
    Level 5
    March 15, 2023

    Then, based on what I am seeing, the client would have been better off not having the PTE as they are not only paying tax to the other state they are paying tax to ID for almost the same amount, which in the past they have not had.

    Are there any ID preparers that would have any insight on this, is Lacerte calculating this correctly?