This article will help you report the New York elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in ProSeries.
PTET returns, payments, and extensions can only be filed through New York State Online Services. Visit the Department of Taxation and Finance for more information. Follow these instructions once the PTE is already paid.
Table of contents:
|‣ To claim the credit on the 1040 return:|
|‣ To generate PTE on a 1065:|
|‣ To generate PTE on a 1120S:|
To claim the credit on an individual return:
- Press F6 to bring up Open Forms.
- Type in 653 to highlight form IT-653 on the list. Press OK.
- Enter the entity name, EIN, and PTET credit amount for each K-1.
The PTE credit will flow to form IT-201, line 71, as a refundable credit. The program will automatically add-back the credit amount on form IT-225, code 219 for state and code 222 for city.
To generate PTE for a partnership:
- Open the Sch K-1 Summary for each partner that was part of the election.
- For tax year 2022: Scroll down to item P, "Did the partnership elect to pay the pass-through entity tax (PTET) for the current tax year"
- For tax year 2021: Scroll down to item Q, "Did the partnership elect to pay the pass-through entity tax?"
- Check Yes.
- Check the Resident or Nonresident box.
You may want to include the amount of PTE paid on this partner's behalf under Supplemental Information, since it's not reported elsewhere on the NY K-1.
To generate PTE for an S corporation:
- Open the CT-34-SH, p1-3.
- Scroll to the S Corporation Amounts for Shareholders Smart Worksheet at the bottom of the form.
- For tax year 2022 returns:
- Check the Electing Resident S Corporation or Electing Standard S Corporation box.
- Enter the PTET/NYC PTET deduction in excess of PTET/NYC PTET liability.
- Enter the PTET credit to be claimed.
- Enter the NYC PTET credit to be claimed.
- For tax year 2021 returns:
- Enter the total Pass-through entity taxable income for all shareholders.
- Enter the total PTET credit to be claimed for all shareholders.
The shareholder's portion of PTET taxable income and credit will transfer to their Schedule K-1 Equivalent as supplemental information.