Question

S-corp Georgia State 1120S vs Personal return K1

Forum|Forum|2 years ago
February 25, 2024
2 replies
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I prepared a 1120S for my LLC S-corp and a personal return. Everything seemed fine.

Then I went back to Turbotax business and added the state of GA. Now it's asking me if I want to pay tax on through the business return, but I don't, it's showing more owed than I have in my personal return. How do I delete it? I tried to delete the forms, but it's coming back up.

But also, do I need to prepare a GA state return for S-corp in TurboTax business?? Or just do the federal return, get the K1, enter it in my personal return and pay the state there?

Thank you!

TurboTax Business Windows

PatriciaV

According to the Georgia Department of Revenue, if your LLC does business or owns property in Georgia or receives income from Georgia sources, you must file a Georgia business income tax return.

The S-Corp itself doesn't pay Georgia income taxes. Instead, the income flows through to the members and is taxed on their personal State income tax returns.

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S

SCORP2Author

See this article to what I was referring to. Don't know if it will benefit me though.

https://moorecolson.com/georgia-pass-through-entities-now-allowed-to-deduct-state-income-tax-entity-level/

PatriciaV

Individuals with flow-through income from a Georgia source are required to file a Georgia State income tax return, even if they don't live in the state.

The information on this link may help you decide if paying taxes at the entity level is the best choice for your partners: HB 149 Pass-Through Entity Tax FAQ

@SCORP2

@mgarry3416

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mgarry3416

The State of Georgia has the option for partnerships returns to "pay" the individual income tax at the partnership level at the highest individual rate for the benefit of the members or partners. What I don't know is if paying the GA State income tax this way would eliminate the need for out of state members or partners from needing to file a separate State of GA income tax return. If it did it would be worth paying the GA state income tax at the highest rate then having all out of state members or partners having to file individual GA State returns.