Passthrough state taxes

Some states have noticed that partners & S corporation shareholders are not getting to deduct state taxes anymore, and they have taken steps to impose the taxes on the entity itself, so the payment reduces federal income before it gets reported to you.  Other states have not caught up to this bright idea – they just force the passthrough to withhold your share of the taxes. The withholding can be annually, quarterly, monthly or more often.  You can avoid penalties by getting the jump on the required filings. This is a highly volatile area with changes happening every month.