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How to enter Maryland PTE tax in ProConnect Tax

SOLVED•by Intuit•Updated 1 year ago

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, 2024. 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:

  1. From the Input Return tab, go to Income ⮕ Passthrough K-1s ⮕ Partnership Info or S-Corp Info, depending on the K-1 that reported a credit.
  2. From the Schedule K-1 sections along the top, select State & Local.
  3. Scroll down to the Maryland Pass-through Entity Member's Information section.
  4. Complete the related fields under the Nonresident/Entity Election section.

To generate the PTE for a Partnership:

  1. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ MD Miscellaneous Information.
  2. Check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
  3. 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.
  4. 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 an S-Corporation:

  1. From the Input Return tab, go to State & Local ⮕ Miscellaneous ⮕ MD Miscellaneous.
  2. Scroll down to the Miscellaneous section and check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
  3. 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)
  4. 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:

  1. From the Input Return tab, go to State ⮕ Other Credits ⮕ MD Other Credits.
  2. 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.
  3. Go to State ⮕ Taxes ⮕ MD Taxes.
  4. Enter the Nonresident tax paid by pass-through entities (Ctrl+E).
  5. If needed, Trust amount of PTE [O] may be used to override the calculated amount of PTE withholding for the fiduciary.

Both the Form 510 and the Form 511 require you to mark checkboxes in order to generate them. If the applicable checkboxes aren't checked, the program will only show the old version of Form 510 and turn off the new forms.

Select the applicable program and module below for instructions on generating the new Form 510 or Form 511.

  1. Go to the Input Return tab.
  2. From the left of the screen, select State and Local.
  3. Select Miscellaneous Information and choose MD Miscellaneous Information.
  4. Under Maryland Miscellaneous Information, check the box labeled Print updated Form 510 or Form 511.
    • If you don't also check the box labeled Electing to remit tax on resident members' shares of income, Form 510.1 will generate.
    • Checking this box and the box labeled Electing to remit tax on resident members' shares of income will generate Form 511.
  1. Go to the Input Return tab.
  2. From the left of the screen, select State and Local.
  3. Select Miscellaneous and choose MD Miscellaneous.
  4. Scroll down to the Miscellaneous section.
  5. Check the box labeled Print updated Form 510 or Form 511.
    • If you don't also check the box labeled Electing to remit tax on resident members' shares of income, Form 510.1 will generate.
    • Checking this box and the box labeled Electing to remit tax on resident members' shares of income will generate Form 511.

Common questions

You can override the starting points for both 510.1 and 511 (line 2) in the program. Select the applicable program and module below for instructions on entering overrides.

  1. Go to the Input Return tab.
  2. From the left of the screen, select State and Local.
  3. Select Miscellaneous Information and choose Schedule K.
  4. Choose MD Schedule K.
  5. Locate the Maryland Form 510 / Form 511 section.
  6. Enter the override amount in the Distributive or pro rata share of income (Pass-through entity taxable income, if 511) [Override] field.
  1. Go to the Input Return tab.
  2. From the left of the screen, select State and Local.
  3. Select Miscellaneous Information and choose MD Miscellaneous.
  4. Locate the Miscellaneous section.
  5. Enter the override amount in the Total distributive or pro rata share of income (Form 510 line 2) [Override] field.

You can also override amounts for the K-1. The income that gets allocated on the K-1s, lines 1 and 2 are each member’s share of the distributive or pro rata share, including on 511 returns

Select the applicable program and module below for instructions on entering overrides.

  1. Go to the Input Return tab.
  2. From the left of the screen, select Schedule K-1.
  3. Select Schedule K-1 Miscellaneous.
  4. Scroll down to the Maryland Miscellaneous section.
  5. Enter any applicable overrides in this section.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Schedule K-1.
  3. Select Schedule K-1 Misc./Schedule B-1.
  4. Enter any applicable overrides in this section for each shareholder.

Select the applicable program below for instructions on filing extensions.

  1. Open a return.
  2. Click on the Profile tab at the top of your screen.
  3. Check the e-file box for both the respective Return and Extension checkboxes.
    • Federal and state, if applicable.
  4. Go to the File Return tab.
  5. On the left side of your page, click E-file Extension.
  6. Clear any extension critical diagnostics.
  7. Click the e-file Now button.

If you've already filed, you probably don't need to file an amended return. However, if you filed on the old 510 and elected to pay tax on behalf of residents, you should probably file an amended 511.

Refer to the above instructions for generating Form 511 when filing an amended return. The Form 511 won't generate unless you check both the Print updated Form 510 or Form 511 box and the Electing to remit tax on resident members' shares of income box.

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