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1040 States

Allocate income to states in the K1 state allocation spreadsheet

Allocation methods

You can use the following 2 methods to allocate income to the states appearing in the spreadsheet.
  • Percentage
    : Enter a percentage in
    XXX.XX
     format in the 1st field available on the State allocation spreadsheet. Select the state to which this percentage applies, then
    Apply
    .
  • Amount
    : In cases where percentages of federal amounts don't apply, you can enter individual amounts for the state.
    Zero
     is a valid entry and will prevent the state amount from defaulting to the federal amount. If you leave
    Amount
     blank, the federal amount, if present, is used in the state's calculation.

Primary state behavior

The ZIP Code you enter in the
K1
 or 
K1T
 screen, regardless of residency, will be considered the primary state for that unit, if that state is attached to the client being processed. The primary state always appears 1st in the State allocation spreadsheet. The
SID
 fields in the
K1
 or
K1T
 screen will be used to populate the 1st column of the spreadsheet. If an
SID
 amount isn't entered and remains blank in the spreadsheet, the federal amount will be used to process income for that state.
If the primary state for that unit is attached as a nonresident or part-year resident, a 2nd primary state will appear in the State allocation spreadsheet if a resident state is attached and being processed for the client. The purpose of a 2nd primary state is to allow for blank spreadsheet amounts to default to federal amounts for the resident state being processed. The 2nd primary state, if present, always appears 2nd in the State allocation spreadsheet.
All other attached states for this client will appear in the State allocation spreadsheet, in alphabetical order as secondary states. These other nonresident and part-year resident-processed states will be assigned
zero
 in every applicable spreadsheet amount field. Until an amount has been entered for a secondary state, no income will be transferred to that state from this unit.
If the ZIP Code represents a non-UltraTax/1040-process state (Nevada, for example), the amounts entered in the
SID
 fields will be reported as
Other
 next to the last column in the spreadsheet. The last column within the spreadsheet represents federal amounts, which may be used for reference only during data entry within the State allocation spreadsheet. In this case, the primary state will be determined by searching for any states being processed as resident, and if none, the 1st alphabetically attached state being processed.

Data entry for different categories of states

States fall within certain categories based on their calculation needs.
  • Full build-up states, AL, CA, HI, MA, and WI, normally require that differences (depreciation, for example) are presented in a format similar to the federal return presentation.
  • Partial build-up states, KY, NJ, and PA, require less detail or specialized calculations that differ from the federal return presentation.
  • AGI states, AR, AZ, CO, CT, DC, DE, GA, IA, ID, IL, IN, KS, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NM, NY, OH, OK, OR, RI, SC, UT, VA, VT, and WV) require that the in-state portion of federal AGI be reported for part-year resident and nonresident returns. These part-year resident and nonresident amounts are transferred and calculated using the AGI Worksheet.
  • States that aren't affected by the State allocation spreadsheet are NH and TN, and
    Trust paid state estimated tax
     within the K1T allocation spreadsheet is used by all processed states.
  • AGI states
    :
    • SID
       fields are available for use for all part-year resident and nonresident AGI states. There's a limitation to the calculation that will result for part-year resident and nonresident AGI states, except New York.
    • Amounts entered in the
      SID
       fields need to be entered as
      limited
       or
      allowable
      .
    • The federal amount columns on the AGI Worksheet won’t be affected by any spreadsheet data entry.
    • The
      6198
       screen
      SID
       fields aren't intended for use by AGI states, except for New York part-year residents and nonresidents.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • State: All states, Alabama
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