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Has anyone found instructions on how to calculate and report the new PTE either from IL and/or how to handle all the inputs in Lacerte?
Best Answer Click here
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https://www2.illinois.gov/rev/research/publications/pubs/Pages/Pass-through-Information.aspx
I found this through IDOR website and it looks to me like it will go on Ln 53a of K-1P.
As far as how to handle through Lacerte, I cannot help you as I dont use that product.
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This is what I have figured out so far.
S Corp - 43.071 check box electing to file and pay pass-through and then go to 49.072 and report in 4th installment the pte paid.
Partnerships - 37.071 check box electing to file and pay pass-through and then go the 43.074 report in 4th installment the pte paid.
On the front page of the IL 1065 or IL 1120S, there is a box that is marked check this box if you elected to file and pay pass-through Entity tax (I for 1065, L for 1120S).
What I haven't figured out is how to deduct on the federal side. Is it deducted on the business return (1065 or 1120S)? Or do you enter the federal deduction of PTE paid on 1040 and where do you enter it?
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We think that on the federal side you just deduct it in the tax section. Don't put it in the state tax field because it's not an add back on IL.
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Bur for some other states it is an addback.
The more I know the more I don’t know.
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@mariegrebe I agree with that assessment.
How will it be handled for replacement tax? They will need to addback to compute replacement tax.
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Actually, it IS an add back on the IL side. See the 2021 IL-1120-ST instructions, page 8 of 31:
You must add back any amount of Illinois Replacement
taxes and surcharge that you deducted on your federal Form 1120S
to arrive at your ordinary business income. You are not required to
add back taxes from other states taken as a federal deduction.
An S corporation that elects to pay PTE tax must add back the
amount of that tax deducted federally, in addition to the add back for
replacement tax deducted.