How do I input New York passthrough entity tax (PTET) with a 1065 return using worksheet view in CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 11/05/2022


To learn how to input New York passthrough entity tax (PTET) in a 1065 return using worksheet view in CCH Axcess™ Tax and CCH® ProSystem fx® Tax.


  • CCH Axcess
  • CCH Axcess Tax
  • CCH ProSystem fx Tax
  • 1065
  • Worksheet
  • New York


New York partnership return reports PTET information in four forms with CCH® ProSystem fx® Tax and CCH Axcess™ Tax:

  • PTET Worksheet
  • PTE Partner Information report
  • IT-204, page 9, line 144a-f
  • IT-204-IP, Item Q and Line 47a-f  (with partner entity types: Individual, Trust, Estate, and Grantor Trust)

There are two methods to preparing and populating the PTET credit:

Method 1: Automated calculation of PTET Worksheet and IT-204-IP credit

  1. Go to New York > PTET Credit > PETET Worksheet / Export worksheet.
  2. Expand Section 1 - PTET Options.
  3. In Line 1 - Opting to file PTET, select the checkbox to automate a PTE Worksheet calculation, based on other return input, and distribute the PTET credit to partners.
  4. (Optional ) In Lines 4-21 - PTET Worksheet Overrides, input as applicable.
  5. Calculate the return.

Method 2: Override the credit distributable to the partners:

  1. Go to New York > Credits worksheet.
  2. Expand Section 31 - Partners Credit Information.
  3. Navigate to Grid 20 - Other Flow-Through Credits Bases and Factors.
  4. In Column Code, select Code 653.
  5. In Column Amount, input applicable credit amount.
  6. Calculate the return.


  • Special Allocation Code 34850 may be used to allocate the credit.
  • If using both Method 1 and Method 2, then the IT-204-IP, line 47a will not populate and the PTE Partner Information report column Direct share of PTET credit will not populate on release 2021.03000 / 2021-3.0.
  • If special allocation 34850 input uses amounts totaling greater than the amount input with Method 2, then IT-204-IP will print incorrectly for partners. 
  • Partners coded as LLC - Disregarded Entity for Federal return will not receive a credit on their IT-204-IP by default. Remove their Entity code of L and their IT-204-IP will receive their portion of the credit, or utilize government form (pink) and line override for Disregarded entity partners.
  • IT-225 addition code A-201 by default includes any state taxes paid deduction from the Federal return. The A-201 amount may need a New York >  Income and Deductions worksheet > Section 1 - Additions/Subtractions > Line 1 input override, as a control, to not include New York taxes paid which are included in the PTET credit calculation.
  • IT-225, when prepared for a IT-204 return, will not include an addition code A-219, per state instructions, page 18: 
  • There is no PTET line on the IT-204-CP.
  • 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 W is work in process.
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