How do I prepare a taxed Montana Form PTE with a 1065 return type using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 03/26/2024


Generate and populate Montana Form PTE subject to pass-through entity tax from all owners' MT Schedules K-1, Part 4, line 14.


  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • Partnership – 1065
  • Montana - MT
  • Worksheet View – WSV
  • Interview Forms - IVF
  • Pass-through Entity Tax – PTET


Prepare as Electing Taxable Passthrough

  • Common State > State PTE Generation worksheet, line Montana, under column Generate State PTE return.
  • PTE-ST1, box 154 - Montana - X to generate State PTE Return.

Resident PTET Election  - Form PTE, page 1, under "Mark all that apply", and MT Schedule K-1  - Resident owner PTET election

  • Montana > General worksheet > section Other Information > line Is the partnership a resident PTET?
  • Interview Form Montana > MT2, box 59 - X if making the resident PTET election.

Note:  Issues reported with release 2023.03020

  • When Resident PTET Election selected, Trust partner entity types may erroneously not calculate PTET tax on MT Sch K-1, part 5, line 1.
  • Resident Individual partner entity types may not calculate PTET tax on MT Sch K-1 unless the Resident PTET Election is selected.
  • For both issues, a fix is projected with release 2023.03040 / 2023-3.4, support recommends using government form / line (pink) override on the K-1, part 5, line 1, as a workaround in the meantime. 

Form PTE, page 3, Part III - Authorized Representative

  • Montana > General worksheet > section Basic Data > PTET Authorized Representative Information – lines name, title, telephone number, and email.
  • Interview Form Montana > MT1, boxes 60-63.

Direct Debit / Deposit

  • Both Direct ACH Debit and Direct Deposit for an e-Filed Form PTE return are a available.
  • Review for debit diagnostic 33584 or deposit diagnostic 33585.

Prepare Extension

  • Montana grants an automatic extension for tax year 2023.
  • If prepared:
    • Not e-Filed. 
    • Must be mailed.
  • Payments either made via state webpay (https://tap.dor/, or mailing a check.
  • Extension payments will appear on Form PTE, line 21 with tax year 2023:
    • Populate amount paid with extension at Montana > Payments / Penalties worksheet > section State Payments > line Current Year extension payment.
    • Interview Form Montana > MT4, box 31.

Form PTE, page 3 - Flow-Through Payments Schedule

  • Montana > Payments / Penalties > section Flow-Through Payment > create a row with a name, FEIN, and applicable amounts.
  • Montana Interview Form MT4, boxes 60-79.

Form PTE, page 2 pre-Payments

Line 21 - 20XX payments 

  • Montana > Payments / Penalties worksheet > lines Current year estimated tax payment and Current Year extension payment.
  • Interview Form Montana > MT4, boxes 31 and 32.

Line 22 - 20XX overpayment applied to 20XX

  • Montana > Payments / Penalties worksheet > line Last years overpayment applied to this year.
  • Interview Form Montana > MT4, box 30.

Application of Overpayment to Next Year Estimate

Form PTE, line 46 - enter the amount from line 45 that you want applied to your 20XX tax.

  • Montana > Payment / Penalties worksheet > section Estimates and Application of Overpayment > line Amount of overpayment to apply to estimates, input an applicable amount from Form PTE, line 45.
  • Interview Form Montana > MT4, box 90.

Next Year Estimates

Direct Debit for next year estimates is not currently available with the state.

Worksheet View

  1. Montana > Payment / Penalties worksheet > section Estimates and Application of Overpayment > select line Estimated tax payment, and input an amount in line Estimated tax - override.
  2. (Optional) Override each voucher with line Estimated Voucher - overrides.
    • Note: If voucher overrides are used, the total of all four vouchers will override the amount entered in line Estimated tax - override.

Interview Form

  • Interview Form Montana > MT4, boxes 91 and 92 (Optional) boxes 95-98.

Letters and Filing Instructions

  • Extension, Return, and Estimate Transmittal Letters and Filing Instructions are available.


  • If PTET is not prepared, the system defaults to calculate Pass-Through Withholding on each partner MT Schedules K-1, Part 5, line 3a.
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