THERE IS NO WHERE IN THE PROGRAM TO ENTER THE PTET TAXES THAT WERE PAID ON A S CORP OR A PARTNERSHIP RETURN

[ANDYBIG]

WE need to be able to imput PTET tax  paid on the corp or partnership level for credit on the personal tax returns

[sjrcpa]

Are you asking about entry on a 1065, 1120S, or 1040?

And there is input available for all 3.

[ANDYBIG]

I AM LOOKING FOR ALL 3. I CALLED the 800 and they said nothing is available yet

[abctax55]

W H A T    S T A T E  ????

(and lose the all caps please..).

There's a place on all three entity screens to input the PTET for CA.  

[ANDYBIG]

sorry about the caps,,,,,,,,New York please

[IRonMaN]

ICOULDHEARALLOFTHESHOUTINGWAYOVERHERE.

[ANDYBIG]

my daughter yells at me all the time about that!

[IRonMaN]

I like your daughter.  I would probably like you too, but I guess I know more about your daughter than I do you 😉

[ANDYBIG]

any way no one has told me where to enter the information

could you please let me know

[IRonMaN]

Sorry, I don't do Lacerte or New York to know how that flows on the state side for the actual credit.

[ANDYBIG]

can anyone tell me where the input is for PTET

[ANDYBIG]

CAN you help please

[abctax55]

I don't do NY.

1) Type PTET in the search box of the program

2) Go to where you "think" it should appear on the Form, right click, jump to input.

[cdupreecpa]

The input is there already on the personal side.  I suspect the 1120s and 1065 modules will be updated in the next 1 or 2 updates

[CastroCo]

From what I've found with our 1065 client:

1) There is a box on the NY form to indicate that the PTET has been elected

2) Lacerte seems to be suggesting that they're not going to implement it as an add-back to NY income: https://proconnect.intuit.com/community/credit/help/how-to-enter-new-york-pte-tax-in-proseries/00/19...

They suggest putting the information in under Supplemental Information, which means it's something we'll have to track manually.

NY's instruction sheet for addback codes doesn't show an addback code either on the IT-204: https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf

[scheunemanncpa]

I haven't looked for it yet.  It is most likely in the other credits in state & local.  Or go to the form you want it on and right click on the field to go to input.

[Hcakes]

NYS input is still not available for PTET on S Corp per my discussion with Lacerte this am.  I guess work around would be to attached a pdf statement to the CT 3S with PTET credit info. 

[IntuitGabi]

@ANDYBIG Here's an article from Lacerte How to enter New York PTE Tax Credit in Lacerte Tax
Does that help you out? Let me know. 

[ANDYBIG]

this helps for individual returns but what about partnership and s corp

[George4Tacks]

@ANDYBIG You started in the wrong spot. This is for adding features to the program that do not exist. You are really asking about a current function you can not find.

https://proconnect.intuit.com/community/taxation/help/how-to-enter-new-york-pte-tax-credit-in-lacert... probably has the hints to your solution.

1. In your profile (click your icon and select My Settings and put Lacerte as the product you use.

2. Start your Lacerte quest by clicking the Lacerte image using Community > Product Support > Lacerte

[jgalak]

This is still a big issue.  I cannot find any place to enter the NY PTET credit and addback in Lacerte's S-corp or Partnership module.

This value should appear in at least 3 different places - as a deduction from income, as a NYS add-back, and as a NYS credit. 

From looking at the K-1 entry form in the individual module, it appears that the NY PTET credit addback should appear on form CT-225 with code EA-219.  However, I can't find this code anywhere in the NYS instructions for that form, only for IT-225, it's individual analog...  There's also no way that I've found to enter it onto that form in the S-Corp or Partnership module...

Sure, I can enter the values into a PDF statement to attach to the return, but that's kind of a ridiculous way to do it, especially since it looks like this has been implemented in ProSeries, but not Lacerte. Very frustrating.

ETA:  Didn't mean this as a reply to George4Tacks, but can't seem to delete it to move it to the right spot.

[JimDunn]

Here is my 2 cents.  You do NOT add back the estimated PTET payment that was made on 2021 on the partnership return it is deductible and you do not use the accrual method of accounting to adjust it to the actual tax that is computed on the PTET annual return.  It is treated as cash basis and in 2022 you will pick up any overpayment as a refund or bal due as a deduction.

This credit is adjusted as an addback on the 1040 not the partnership return.   I think the credit goes on line 1 47a on page 9 part 2 of the IT-204 BUT there is no code 653 that should be there. TELL pro series to get it together....

My workaround it on the individual K-1, IP p4 answer quest Q and on the Supplemental information I put IT-653 PTET Credit with the amount.  I think that works unless they match but I think NYS will pull the PTET information from the online filing of the PTET return.

Hope this helps and if anyone has a better solution let me know - other that wait out the program fix if they ever do one, they have not for several NYS items such as the Hot Spot deduction.

[JimDunn]

One last thing - the PTET credit is the actual tax paid on the online form NOT the deduction taken on the partnership return.

[cdupreecpa]

why wouldn't an accrual based taxpayer deduct from their federal return and add back to the state return the exact amount of the PTET tax, regardless if an estimate is paid or not?    

Cash basis taxpayers should deduct the 2021 estimate if paid from their federal return but add it back on the CT 34-sh (s corp), IT-204-IP (1065).  (The input is there on the 1040 module for this in the K-1 screen).  The credit they claim is the exact amount that is computed on the NYS online services website filing.  

And how are you both deducting for the estimated tax payment on your NY tax return and also passing through the tax credit to the shareholder?  isn't that the classic double dip?

[cdupreecpa]

I do agree lacerte needs to get its act together on this.  There needs to be input in the 1120s and 1065 modules to enter these adjustments.  I'll keep filing the returns at the NY website, but at least make an effort to give us the correct input lacerte

[JimDunn]

Believe me this does not make sense in tax law as I have done things in the past 40 years  unless you equate it to an individual return TP making estimates.  I read somewhere that the PTET payment is to be treated on the tax return as a cash basis on the entity return taxpayer even if accrual. 

As for the double dip - no because the individual must make the IT 225 addback for the amount of the tax payment credit passed through.  If is not done at the entity level. Pro series does that automatically if you put the payments on the form IT-653 line A-219.

The reason you cannot accrue the payment in is because the credit pass-thru cannot exceed the estimated tax paid, no payment be the entity, no credit to the taxpayer.

OK - this is my understanding of this NYS crap and the State is not giving much guidance that I can find.

Thanks,

Jim

If you can show me anything that disputes my "belief"  on how this works it would be much appreciated.

NYS told me to read page 10 of the instruction for the IT-204 - it has one line on how to report the credit to the shareholder- what a joke.

[jgalak]

"This credit is adjusted as an addback on the 1040 not the partnership return. " 

I would expect this addback to be reported by Partnership to the taxpayer on Form IT-204-IP, line 20, with code EA-219.

Likewise, I'd expect it to be reported by an S-Corp on CT-34-SH, line 3, with an attached CT-225 with the amount listed there under code EA-219.

This would treat it the same way as any other State vs Federal addback - depreciation differences, state and local tax, etc.

And yet, there's absolutely no way I've been able to find in Lacerte to make this entry on either the IT-204-IP or the CT-225.

[JimDunn]

That is what I would expect also but I do not believe the add back is passed through from the entity.  This is a weird way they want us to handle this assuming I am correct and the fact that Pro series picks up the adjustment automatically from the IT-653 on the IT-201.  If the entity made the adjustment it would be reduced twice on the NY personal return.

We will see...........

[Adriane S]

Here is my work around (as of 2/18/22) for 1065, you'll have to find the corresponding screens for a 1120S:

1. deduct the amount paid or accrued on federal form

2.  on state K1 you must check box that entity elected for current year and mark if partner was allocated to resident/non-resident.  (screen 32.1 on 1065), page 2 of IT-204-IP, question Q

3. enter the state income tax addback modification A 201 (screen 40.091 on 1065)

4. enter the total credit that should be picked up by all partners (screen 41.091 - NYS credits, other credits bases - click on credit information box (very last line in that screen) and you can manually enter the code 219 or 220 (reference instructions IT 225 for PTET credit).  - this will then have the credit amount appear on page 4 of the IT 204IP

5. if you need to specifically allocate the PTET credit among the partners differently than their partnership %, then go to screen 39.1.

Hoping for better guidance from both NYS and Lacerte on this! 

[JimDunn]

If you enter an amount on the IT225 at the partnership level in pro series your taxpayers accountant may add it twice as on the individual pro series return the program automatically add it back on the 225.  Especially if you add back an amount that was estimated not the credit amount. Your way will work if you use accrual not cash basis as the addback may not agree to the credit on cash basis. This is also why I believe entities treat this the way I previously described in a prior post.

I still believe that the entity return is to treat this strictly as cash basis at the entity level and no addback is done at the partnership level on the IT-225 either for payments or a refund of an overpayment, the individual must report the addback based on the credit amount reported to them on their IT-201.

Hopefully someone will find true NYS guidance for the entities.

[pgershon]

This is a comment I posted on another board that relates to TurboTax Business and this issue with PTET reporting on NYS 1065 partnership forms:

Yesterday, Intuit finally released the NYS partnership forms for Turbo Tax business.  But the treatment of the A-219 addition to NYS income for the PTET expenses (included in federal income) does not work.  In order to get the EA-219 reported on line 20 of partners NYS K-1 forms, form IT-225 must be filled in with the partnership's A-219 amount.  But when the A-219 selection is made from the drop box, it turns red and TurboTax reports an error.  The IT-225 instructions say not to fill out the form for IT-204 filers.  But it is needed to get the K-1 information to partners.  I do not see a workaround.

[DGerard]

After numerous calls to Lacerte there is hope that a place for the adjustment will come out before 3/15.  Currently you would have to create a Shareholder statement on screen 34 of the S-Corp module and explain that the software has limitations however the PTET was elected and paid in 2021 and the amount for the S/H is X.  One shareholder, easy, many shareholders not so easy.

On the individual return there is a NY form (IT-653) where you can enter the data where it flows to the IT-201-ATT then to the IT-201 line 71.  Long way to go but at least it's visible on NY's side. 

On the federal side you would enter it as a tax, then make it a modification for NYS purposes and attach the statement.

Hope this helps and if anyone see's a real solution on the 1120-S / CT-3S please post.

[pgershon]

NY form also goes to IT-201 line 23 and IT-225 (add back to federal income)

[DGerard]

pgershon - you are right and what I'm noticing is that the amount paid for PTET is now being included twice.  First on the IT-225 Part 1 with code A-219 and again in Part 2 with a code of EA-201  which is part of the state tax addback feeding from the CT-3S.  No my thinking is that the PTET is not included as a NYS addback but rather just an "Other Tax" on the 1120-S.  Still get the deduction, but not added back until it becomes classified as the PTET.  

Now I get the right answer however Lacerte has to incorporate this into the software to make sure it is reporting accurately.

[JimDunn]

Again I believe you do not add the PTET back on the partnership return 225.  Other than reporting the actual PTET tax liability off the PTET return filed NOT the estimated payment made by the entity  to the shareholder as a credit I do not believe the entity reports the addback. It is a deductible tax like a payroll tax on the entitys federal and state return and I believe that is on the CASH basis not that actual amount computed on the PTET unless you happen to were good enough to have the actual liability equal the estimated payment when you paid the estimate in 2021,  The addback is done by the individual on their IT-201 which pro series does automatically when you enter the credit on the IT-653. 

If I am wrong, I may have some unpaid summer work lol like I need that.

[sdraught]

ANDYBIG, Did you find out how to put in your PTET for New York.  I have been working on it for a week and can not find it.

[Hcakes]

For S corp Screen 45.091  Other Additions -  I show addback of PTET for IT-225, Code A-219

and I showed the PTET Credit on Part II Credits  with a note to report on IT-653.