We received a K1 statement from a MLP (TLP) for which we are an individual domestic partner. We have filled in the K1 information into our CA resident tax forms. However, the K1 lists a few other states[1] where the MLP files its returns. This list does not include our resident state, CA, but does include a handful of other states. We have never received any income from these other states, and have no reason that we would ever need to file a return in these states. The MLP only lists losses for all of these other states.

Unfortunately, the MLP does not give any advice on whether we need to file a state return for these states. How can we find out whether we are required to file state returns for these other states?

--magwart

[1]States listed: AL, AR, FL, IN, KY, LA, MO, MS, OH, OK, TX

I can provide the answer for at least one--
OK - Non-resident files an OK tax form only if gross income from OK sources is at least $1000
http://www.oktax.state.ok.us/oktax/incomtax.html


I think you might be safe from Texas filing requirements also.



Hohum

Unfortunately, the MLP does not give any advice on whether we need to file a state return for these states. How can we find out whether we are required to file state returns for these other states?

--magwart

[1]States listed: AL, AR, FL, IN, KY, LA, MO, MS, OH, OK, TX

TX does not have a state income tax, so you do not have to file.

FL also does not have a state income tax, although I seem to recall a tax on some types of investment income, so you will have to check their state website.

For the others, I am pretty sure they all have state income taxes, so you will also want to check their state websites.

You can usually find the website by googling the state name and "non resident income tax filing requirements"

AJ

We received a K1 statement from a MLP (TLP) for which we are an individual domestic partner. We have filled in the K1 information into our CA resident tax forms. However, the K1 lists a few other states[1] where the MLP files its returns. This list does not include our resident state, CA, but does include a handful of other states. We have never received any income from these other states, and have no reason that we would ever need to file a return in these states. The MLP only lists losses for all of these other states.

You have received income from all of these states now, even it is only losses.

Unfortunately, the MLP does not give any advice on whether we need to file a state return for these states. How can we find out whether we are required to file state returns for these other states?

They are not tax advisors and for them to provide advice would expose them to potential liability should their advice be wrong. You need to check with each state to determine whether you have to file a nonresident return in that state. You may want to file a return anyway in order to preserve any loss carryforwards you are entitled to. Investing in MLPs is often a mistake for small investors. The investment returns don't justify the paperwork headaches.

Ira