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:
  • 01/27/2023

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

  1. Go to New York > NY14 - PTET Wksht, Additions, Subtractions, START-UP NY Credits.
  2. 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.
  3. In Box 141 - Produce PTE shareholder list, select Yes to prepare and populate PTE Shareholder Information list.
  4. (Optional) Go to NY14A - New York PTET Worksheet Overrides, in boxes 30-57, input overrides if applicable.
  5. 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

    1. Go to New York Form NY7 - New York Long-Term Disability, Min Tax, EZ Capital, Other Credits and Information.
    2. In Box 110 - Code, select code PTET.
    3. 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.
    4. In Box 112 - PTET - Taxable Income, input applicable PTET Income amount.
      • This input posts to PTET Worksheet only.
    5. Calculate the return.

    Method 3: Override input of PTET income and credit amounts for the NY Schedule K-1s only.

    1. Go to New York > NY15 - Shareholder's Overrides.
    2. In Box 30 - Shareholder number (MANDATORY), input an applicable shareholder number.
    3. In Box 50 - Credit Code, select from the following codes:
      • PTETC - PTET - Credit.
    4. In Box 52 - Credit Amount, input an applicable amount relevant to the code selected in step 3.
    5. Select New Entity , ,  to create override any additional shareholder credit amounts.
    6. Repeat steps 2-5, as applicable.
    7. 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 a IT-204 return, will not include an addition code A-219, per state instructions, page 18: 
    • 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.
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