Estimated taxes paid by investment entity

Some states, such as New York and Connecticut, require partnerships to make estimated income tax payments on behalf of partners who are non-residents. The amount paid on behalf of such partners is indicated in the applicable state’s K-1 or in a footnote thereto and such payment should be taken by that partner as a credit on his or her applicable non-resident state income tax return.

New York exempts partnerships from making such estimated tax payments for its non-resident partners if the partnership receives a completed Form IT-2658-E from the non-resident partner. By signing the form, the non-resident partner agrees to comply with New York State's personal income tax return filing and payment requirements. Connecticut does not currently provide a similar exemption.