Ok.  Here's my situation.  I have an S Corp (TX) that has royalty income in NM.  The royalties have NM income tax withheld (shown on Form 1099s).  I want that withholding to pass directly to my shareholder.  I think the withholding should show up on the S Corp return pg. 1, line 12 and line 14.  I also think the withholding should show up on form PTW-D line 3 and Schedule A, box 8.  with box 5 checked yes.  The system doesn't like this though because PTW-D line 2 is smaller than line 3.  Am I required to file Form PTW-D as an S Corp.  If not how do I get rid of it?  I'm confused and maybe overthinking this.  Thanks!