Are these references to a VA return?

While PTET tax is deductible at the federal level, most states do not allow a deduction for state income tax - PTET or other.

Yes, it's for VA personal tax. I got that it cannot be deduct but I only took credit so I don't get it as to why it increases income.

Because it was deducted to arrive at K-1 income it needs to be added back on the VA return.

Thank you again for your answer. I think I got what you explained. May be what I don't understand is the concept of tax expense. I did not include VA tax payment as expense in the 2022 K-1 as it was paid in 2023 and P&L is cash basis. Now, with credit being added back, I am inflating income.