How do I prepare California Form 592-PTE in a 1065 return using worksheet view in CCH® ProSystem fx® Tax and CCH Axcess™ Tax?
- Article Type:
- How To
- Last Modified:
- 07/28/2023
Objectives
Learn how to generate and populate California Form 592-PTE for nonresident passthrough entity partners in a 1065 return using worksheet view.
Environment
- CCH® ProSystem fx® Tax
- CCH Axcess™ Tax
- Partnership – 1065
- Worksheet View – WSV
- California - CA
- Form 592-PTE
Procedure
Prepare Form 592-PTE
Verify the state of California is active in the return; either state Form 565 or 568 should be generated.
- Go to Partners > Partner Information worksheet.
- Select applicable passthrough partner.
- Select Detail.
- In Line 13 - Partner entity type, select or verify applicable partner type.
- Valid entity types to be included on Form 592-PTE are estates, trusts, S corporations, LLCs and partnerships.
- In Line 18 - Partner Residency - State if different code, select an applicable state other than CA.
- Go to California > Nonresident Withholding worksheet.
- Expand Section 1 - Basic Data.
- In Line 1 - Produce Form 592, select the checkbox.
- Calculate the return.
Distribution of Amounts
- 592-PTE, Schedule of Payees, line "Total Income" is derived from a partner's California Schedule K-1, Income (Loss) section, column e - California Source Amounts and Credits.
- Special Allocation codes and Ratio ID numbers are not currently used to control 592-PTE income and withholding distribution.
- Control the income used for each withholding period calculation with input at California > Nonresident Withholding worksheet > Section 5 - Form 592 - Partner Member Information, > columns Form 592/592-A 1st (2nd, 3rd, 4th) Payment (Detail view, lines 11-14 in tax software year 2022).
- Income column may be used to control each partner's amount of income, per payment period, used in calculating Amount of Tax Withheld.
- Income column is not used with amount of zero unless an amount above zero is entered with column Amount Withheld - O/R.
- Amount Withheld - O/R may be used to control each partners amount withheld regardless of whether California Source Income is allocated to them.
- Income column may be used to control each partner's amount of income, per payment period, used in calculating Amount of Tax Withheld.
Notes
Passthrough partners will be included if the following conditions are met:
- The partner is coded as a nonresident to California.
- The partner is coded as a passthrough entity type P, A, T, G, S, E, T, L, N.
- At least $1 of 592-PTE withholding is calculated, or the partner number and a zero is input for at least the first (next year) Form 592 payment voucher at California > Nonresident Withholding worksheet > Section 5, lines 11-14 - Amount Withheld - O/R column.
- California > Nonresident Withholding worksheet > Section 5 - Detail > Line 9 - Include on Form 592-PTE can be used to include, or exclude, specific partners from the 592-PTE Schedule of Payees.
Two sets of 592-Q payment vouchers are automatically prepared providing two payment options for your client:
- 592-Estimate - Estimate Payment Voucher for Pass-Through Entity Withholding.
- Four separate payment vouchers by default for the client to spread out the calculated 592-PTE withholding.
- This iteration of the 592-Q voucher(s) can be suppressed using California > Nonresident Withholding worksheet > Section 9 - Form 592-Q, line 1, and each voucher can be overridden in lines 2-5.
- 592-Q Payment - Final Payment Voucher for Pass-Through Entity Withholding.
- A single payment voucher with the total calculated on 592-PTE, page 1, line 7.
- 592-Q Final can only be overridden with input made to California > Nonresident Withholding worksheet > Section 5 - Form 592 Partner / Member Information > Detail > Lines 11-14, column Amount Withheld - O/R.
- California > Nonresident Withholding worksheet > Section 2 - Options > Lines 7-10, selecting any of these checkboxes will cause 592-PTE to prepare without partners on the Schedule of Payees, and thus 592-Q Final will not prepare, unless California > Nonresident Withholding worksheet > Section 5 > Detail > Lines 11-14.
Additional Information
CCH Axcess™ Tax F1 Cross-Reference:
Form 592-PTE
CCH® ProSystem fx® Tax Worskheet view F1 Cross-Reference:
Form 592-PTE
Form 592-PTE
CCH® ProSystem fx® Tax Worskheet view F1 Cross-Reference:
Form 592-PTE
Solution Id | 000227336/000118967 |
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