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How to enter New York PTE tax in Lacerte

SOLVEDby Intuit170Updated March 04, 2022

This article will help you report the New York elective pass-through entity tax (also called PTE or PTET) in Intuit Lacerte business and individual returns.

PTET returns, payments, and extensions can only be filed through New York State Online Services at this time. Visit the Department of Taxation and Finance for more information. Follow these instructions once the PTE is already paid.

To claim the credit on an individual return:

  1. Go to Screen 53.091, New York Credit Forms.
  2. Scroll down to the Pass-through Entity Tax Credit (IT-653) section at the bottom of this screen.
  3. Enter the following information in the table provided:
    • Name of Entity
    • Employer ID number
    • PTET credit amount

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.

To indicate PTE was paid on a partnership return:

  1. Go to Screen 32.1, Partnership Miscellaneous Info.
  2. Scroll down to the New York Information section.
  3. Check the box labeled Elect to pay the pass-through entity tax (PTET) for the current year.
  4. Enter a 1 0r 2 in Residency status assigned for purposes of computing PTE taxable income: 1 = resident, 2 = nonresident.
  5. Repeat these steps for each applicable partner.
    • Tip: Press Ctrl+Down arrow on your keyboard to jump to this same input field for the next partner.
  6. Go to Screen 41.091, New York Credits.
  7. Scroll down to the Other Credit Bases section.
  8. Open the Credit bases (Ctrl+E) field.
  9. Enter code 653 and the total PTET paid for all partners.
    • Note: You won't be able to specially allocate the credit if you leave the code blank.

The PTET will be reported on form IT-204, lines 144a-f.

To allocate the credit to specific partners:

Use the state's Partnership PTET Worksheet to determine the amount of credit each partner can claim.

  1. Go to Screen 39.1, NY Special Allocations.
  2. On the left-side menu, navigate to Credit Information > Other Passthrough Credit Bases.
  3. Click on 653.
  4. Allocate appropriate credit amount to each partner.

The partners' credits will flow to IT-204-IP, lines 47a-47f.

For S-corporate returns:

Unlike partnerships, the CT-34 and CT-34-SH don't have a specific question or line where you can indicate PTET.

However, the form instructions state that you must provide a statement to each shareholder listing their pro rata share of:

  • pass-through entity taxable income, and
  • direct share of PTET credit.

To generate statements with the required information:

At this time, there's not a way to generate this attachment in Lacerte. However, you can use the Supplemental Info screen to include the required amounts with the complete K-1 package.

  1. Go to Screen 34, K-1 Supplemental Info. (per S/H).
  2. For each applicable shareholder, enter their pro rata share of PTE taxable income and PTET credit.

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