Before you start:
- To determine if your client is eligible for Entity Level Tax (also known as PTE or Pass Through Entity Tax) see PTE Eligibility.
To claim the PTE credit for individuals:
- Go to Screen 53.197 Massachusetts Credit Manager Schedule.
- Scroll down to Section 4 - Refundable Credits Received from MA K-1s or via Credit Transfer.
- Under Credit Type select ELTCRD.
- Complete the remainder of the columns based on the information from the Massachusetts K-1 schedules.
To generate the ELT for a partnership
- If you plan on e-filing the MA ELT on screen 1 select the Massachusetts ELT box.
- Go to Screen 37.194 Massachusetts Miscellaneous Information.
- Under Massachusetts Miscellaneous check the Investment partnership as defined in Pass-Through Entity Withholding Reg. 830 CMR 62B.2.2(2) to check the Yes. box on Form 3, page 1, line J.
- Go to Screen 43.193 Entity Level Tax.
- Under General Information check the Elect to file and pay entity level tax (Form 63D-ELT)
- Under 2021 Entity Level Tax Payments enter any amounts paid for the year.
- Complete any needed Extension or 2022 Estimated Entity Level Tax sections as needed for your client's tax situation.
- Lacerte will automatically enter the total number of members in pass through entities and the total number of qualified members at the top of Form 63D-ELT.
- Section 1 of the form 63D-ELT will populate based on the income from Schedule SK-1 for the total number of qualified partners.
- The partners portion of the Chapter 63D credit will be completed at the bottom of Schedule 3K-1 under Partner’s Share of Chapter 63D Refundable Credit.
To generate the ELT for an S corporation:
- If you plan on e-filing the MA ELT on screen 1 select the Massachusetts ELT box.
- Go to Screen 49.196 Entity Level Tax.
- Under General Information check the Elect to file and pay entity level tax (Form 63D-ELT)
- Under 2021 Entity Level Tax Payments enter any amounts paid for the year.
- Complete any needed Extension or 2022 Estimated Entity Level Tax sections as needed for your client's tax situation.
- Lacerte will automatically enter the total number of members in pass through entities and the total number of qualified members at the top of Form 63D-ELT.
- Section 1 of the form 63D-ELT will populate based on the income from Schedule SK-1 for the total number of qualified partners.
- The shareholder portion of the Chapter 63D credit will be completed at the bottom of Schedule SK-1 under Shareholder’s Share of Chapter 63D Refundable Credit.
To generate the ELT for a fiduciary:
- If you plan on e-filing the MA ELT on screen 1 select the Massachusetts ELT box.
- Go to Screen 60.193 Entity Level Tax.
- Under General Information check the Elect to file and pay entity level tax (Form 63D-ELT)
- Under 2021 Entity Level Tax Payments enter any amounts paid for the year.
- Complete any needed Extension or 2022 Estimated Entity Level Tax sections as needed for your client's tax situation.
- Lacerte will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
- Section 1 of the form 63D-ELT will populate based on the income from the Schedule 2K-1 for the total number of qualified beneficiaries.
- The beneficiaries portion of the Chapter 63D credit will be completed at the bottom of the Schedule 2K-1 under Beneficiaries Share of Chapter 63D Refundable Credit.
