This article will help you report the Maryland passthrough business alternative income tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in Intuit ProConnect.
These returns are due on September 15, 2022. Learn more about the new forms here.
Because we transitioned forms mid-year in the prior year, Form 510.1 existed. This form is no longer available in tax year 2021.
To claim the credit on an individual return:
- From Income, under Passthrough K-1s, go to the Partnership Info or S-Corp Info, depending on the K-1 that reported a credit.
- From the Schedule K-1 sections along the top, select State & Local.
- Scroll down to the Maryland Information section.
- Complete the related fields under the Nonresident/Entity Election section.
To generate the PTE for a partnership:
- From State & Local, under Miscellaneous Information, go to MD Miscellaneous Information.
- Check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
- For any partner-specific overrides, go Maryland Miscellaneous and complete the related fields. You will find it from Schedule K, under Schedule K-1 Miscellaneous.
- For additional inputs at the Maryland Schedule K level, go to MD Schedule K for the following fields. You will find it from State & Local, under Schedule K:
- Distributive or pro rata share of income (Pass-through entity taxable income, if 511) [O]
- Non-Maryland income (separate accounting)
- Overpayment applied from 2020 (Form 511)
- Overpayment applied to next year (Form 511)
To generate the PTE for a S corporation:
- From State & Local, under Miscellaneous, go to MD Miscellaneous.
- Scroll down to the Miscellaneous section and check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
- Complete the following fields where relevant:
- Total distributive or pro rata share of income (Form 510 line 2) [O]
- Non-Maryland income (line 3a)
- Overpayment applied to next year (Form 511) (1=all)
- For any shareholder-specific overrides, go to MD Shareholder Overrides and complete the related fields under the Nonresident Tax Withheld section. You will find this screen from State & Local, under Schedule K-1.
To generate the PTE for a fiduciary:
- From State & Local, under Other Credits, go to MD Other Credits.
- Scroll down to Tax paid by an electing PTE section and enter the Pro rata or distributable amount of PTE tax paid by electing PTE. This amount will flow to Form 504CR.
- From State & Local, under Taxes, go to MD Taxes.
- Enter the Nonresident tax paid by pass-through entities (Ctrl+E).
- If needed, Trust amount of PTE [O] may be used to override the calculated amount of PTE withholding for the fiduciary.