How do I input New York passthrough entity tax (PTET) with an 1120S return using interview forms in CCH® ProSystem fx® Tax?
- Article Type:
- How To
- Last Modified:
- 02/16/2023
Objectives
Learn how to input New York passthrough entity tax (PTET) in an 1120S return using interview forms view in CCH® ProSystem fx® Tax.
Environment
- CCH ProSystem fx Tax
- 1120S
- S Corporation
- Interview
- IVF
- New York
Procedure
New York S Corporation return reports PTET information in four forms with CCH® ProSystem fx® Tax and CCH Axcess™ Tax:
- PTET Worksheet
- PTE Shareholder Information report
- CT-34SH, page 3, below line 111.
- NY K-1 Equivalent, at the bottom of page 2.
Method 1: Automated calculation of PTET Worksheet and NY K-1 Equivalent credit
- Go to New York > NY14 - PTET Wksht, Additions, Subtractions, START-UP NY Credits.
- In Box 140 - Produce PTE worksheet, select Yes to automate a PTE Worksheet calculation, based on other return input, and distribute the PTET credit to shareholders.
- In Box 141 - Produce PTE shareholder list, select Yes to prepare and populate PTE Shareholder Information list.
- (Optional) Go to NY14A - New York PTET Worksheet Overrides, in boxes 30-57, input overrides if applicable.
- Calculate the return.
Method 2: Override the PTET Income and Credit for the PTET Worksheet, and amounts distributable to the shareholders NY K-1 Equivalent (Tax Year 2021 ONLY)
- Go to New York Form NY7 - New York Long-Term Disability, Min Tax, EZ Capital, Other Credits and Information.
- In Box 110 - Code, select code PTET.
- In Box 111 - Amount, input PTET credit amount.
- This input posts to PTET Worksheet, PTET Shareholder Information report, CT 34SH, page 3, and NY K-1 Equivalent.
- In Box 112 - PTET - Taxable Income, input applicable PTET Income amount.
- This input posts to PTET Worksheet only.
- Calculate the return.
Method 3: Override input of PTET income and credit amounts for the NY Schedule K-1s only.
- Go to New York > NY15 - Shareholder's Overrides.
- In Box 30 - Shareholder number (MANDATORY), input an applicable shareholder number.
- In Box 50 - Credit Code, select from the following codes:
- PTETC - PTET - Credit.
- In Box 52 - Credit Amount, input an applicable amount relevant to the code selected in step 3.
- Select New Entity , , to create override any additional shareholder credit amounts.
- Repeat steps 2-5, as applicable.
- Calculate the return.
Notes
- Method 2 paired with New York special allocation code 34850 will override Method 1 of PTET credit distribution to NY K-1 Equivalent(s) and PTET Shareholder Information report.
- Method 3 will override method 1 and method 2; PTET credit distribution to NY K-1 Equivalent(s) and PTET Shareholder Information report, and does not affect PTET Worksheet, lines 14 and 15.
- Use New York special allocation code 34850 to allocate both the PTET income and credit between shareholders.
- Create a .xlxs file / .csv file for upload onto NYS website:
- Switch to Worksheet view > Go to State > New York > New York Worksheet View > PTET Worksheet Options / Export > Expand Section 2, select , and see Additional information KB article 138208 below.
- IT-225, when prepared for an IT-204 return, will not include an addition code A-219, per state instructions, page 27:
- The credit amount may be derived from the state / local tax deduction line on Form 1065, page 1, or the farm, rental or other schedule.
- The G to i is work in process.
Additional Information
PTET my be filed online through the Business Online Services account.
- https://www.tax.ny.gov/bus/ptet/
- https://www.tax.ny.gov/pdf/memos/ptet/m21-1c-1i.pdf
Additional Knowledgebase articles
- 2021 New York Passthrough Entity Tax (PTET) topics for Partnership and S Corporation returns using CCH Axcess™ Tax CCH® ProSystem fx® Tax.
- How do I generate and process New York Passthrough Entity Tax (PTET) for submission to the state in CCH® ProSystem fx® Tax and CCH Axcess™ Tax?
- How do I input New York Passthrough Entity Tax (PTET) in a 1040 return using interview forms in CCH® ProSystem fx® Tax?
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