Georgia PTE Election 2022 Questions and Answers

  • Article Type:
  • Documentation
  • Last Modified:
  • 05/30/2023

Objectives

Form 600S (1120s) Form 700 (1065)

FAQs
https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq

 

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • Partnership – 1065
  • S Corporation – 1120S
  • Georgia - GA
  • Worksheet View – WSV
  • Interview Forms – IVF
  • State And Local Tax – SALT
  • Pass-through Entity Tax – PTET

Details


Updates:
  • Release 2022.03000 - An option has been added to automatically addback the GA taxes deducted on the federal return. This option must be checked to prevent doubling of taxes for those who have already manually entered the addback.
    • Worksheet view: Georgia > Income / Deductions worksheet > section Other Adjustments and Overrides > line Addback GA PTE taxes deducted on federal Form 1065.
    • Interview Form: Georgia > GA2 > box 47 - X to addback PTE taxes deducted on federal Form 1065.
QuestionAnswer
-Form Name
  • Form 600S if the entity is a Subchapter "S" corporation or on Form 700 if the entity is a partnership.
-State Links
Election for PTE
-Is an Election Required?
  • Yes. 
    • "The election may only be made by a Partnership or S-Corporation that is 100 percent directly owned and controlled by “persons” eligible to be shareholders of an S-Corporation under § 1361 of the Internal Revenue Code of 1986, as amended.  Single-member LLCs not taxed as a Partnership or S-Corporation are not eligible to make the election. “Persons” can include certain estates and grantor trusts."
-Made when?
  • The election must be made by the due date or extended due date of the entity’s income tax return and is irrevocable after the applicable due date passes.
-Good for?
  • The election covers the tax year and irrevocable once the return is filed.
-How do we make this election?
  • The election is made by checking the box on page 1 to elect to pay the tax at the entity lever, which in turn will fill out section 1 (and 3 for 1065 returns)
-Separate Form needed?
  • No.
-Option  to Opt-Out?
  • If the passthrough entity elects to be taxed at the S-Corporation or partnership level, then all owners are included.
Generation of State PTE Return
-How do we generate the form above?
  • Common State/City > State PTE Generation > State PTE Return Generation > Georgia - Generate State PTE return
    • Interview Form PTE-ST1, box 70.
  • Georgia > General worksheet > section 1 - Basic Data > line Electing to pay tax at the entity level.
    • Interview Form Georgia > GA3, box 60 - X if electing to pay tax at the entity level.
-Is this a separate filing from the main form, part of the main form, or filed on it's own?
  • Part of the main form.
Estimates
-Are there estimates for this form?
  • Protective estimates are prepared and submitted on 602-ES.
-How do we generate them?
  • Prepared automatically if tax calculated on return is $500 or greater in the current year.
  • Force prepare the 602-ES with input:
    • Worksheet view - Georgia > Payments / Penalties worksheet > section Estimate and Application of Overpayment.
      • In line Estimated tax - override, input an amount $500 and above, or
      • In line Amount Paid - Voucher 1-4, input an amount.
    • Interview Form - Georgia > GA6.
      • In box 73 - Net Estimated Tax - override, input an amount $500 and above, or
      • In boxes 80-83, input an amount.
  • Suppress 602-ES with an input of zero for the Net Estimated Tax - Override, or zeros for each voucher calculating an amount.
-Can you apply an overpayment from the current year form?
  • Georgia > Payments / Penalties worksheet > section Estimate and Application of Overpayment.
    • In line 3 - Amount of overpayment to apply to estimate, input an amount, or
    • In line 8 - Application of overpayment, select an applicable option.
Interest/Penalties
-Do interest/penalties apply?
  • Late payment interest can be calculated using the same input as a regular return.
  • To input payments by owners that do not carry to the return.
    • 1120S - STPay1, payments with a code 6
      • Tax Payments, State Quarterly Payments with a code of 6
    • 1065 - GA6, boxes 100 - 104, code 2
      • Payments/Penalties/Estimates > State Tax Payments > State Use 1 code is a 2    
-Is there an underpayment penalty?
  • The underpayment penalty should be calculated on the Form 600 UET with the 'UET Annualization Exception Attached" Field checked. 
        See the FAQs for further instruction
Additional PTE Information
Common State > State PTE Generation worksheet >Grid 23  (Interview PTE-ST1, boxes 300-364)
-Does this section apply to this state?
  • No.
Additional Input Available
- Does new input options under State and City Tax Refund flow to the state?
  • No.
- Does new input options under Taxes and Licenses flow to the state?
  • No.
- Does new input options under Rent/Royalty flow to the state?
  • No.
- Does the new input options under Farm flow to the state?
  • No.

Note

  • The composite return is N/A if a PTE return is filed.

Additional Information

N/A

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