Elected for Pass-Through Entity Tax on New York S-Corp Return; ProSeries Version looks no different from last year

Forum|Forum|4 years ago
January 24, 2022
2 replies
1 view

Hello,

A client of mine who files a subchapter S corporation return in New York elected for and paid the pass-through entity tax, where the S corporation pays state income tax, then gives the shareholders a tax credit on their New York returns.

Looking at the New York subchapter S corporation return in the program, there doesn't seem to be anything different from 2020 or anything that calculates the 6.85% pass-through entity tax and also allows you to show estimated payments of it. Am I totally missing something or is this something that the return module will update when it is all supposedly ready for filing on February 4th?

ProSeries Professional

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G

garman22

Intuit Community Champion

I dont use PS for biz but if I had to guess, the entry would go on the federal and would transfer over to NY state. remember tho, payments would have to be made in 2021 for it to be deductible in 21.

C

caj111Author

Level 4

Looks like I am answering my own question here, after calling New York State about it.

While you still need to file the Form CT-3-S in order to ensure the fixed dollar minimum tax (based on receipts) is paid, the pass-through entity tax, as of now, can only be filed through the New York State Taxation & Finance website and won't be available until February. Then, you will file the Pass Through Entity Tax return on the New York State website at www.tax.ny.gov. If your client doesn't already have a New York State corporation tax online account, they need to set one up, though they most likely already would have had one if they made the election to file under the pass-through entity tax (though they could have elected for 2021 by mail).

J

JBenciv1

Level 3

That's how I read it also. That's weird - you would think they would want this information on a NY K-1 so the recipient knows that there's a credit available to him or her. Plus will tax preparers be able to prepare a PTET return for a client? Why can't they develop a form, have Lacerte or ProSeries integrate it into the software and e-file it?

C

caj111Author

Level 4

You would think that's how it would be done, but I can't put the blame on ProSeries or even New York State here, because this change was made so late last year and it takes time to develop the forms and electronic filing infrastructure. The New York Taxation & Finance front-line employees don't have all the answers with this one, so naturally, ProSeries wouldn't have all the answers either. Theoretically the online Pass-Through Entity Tax Return will have something that shows a credit you enter on the client's personal New York State return, worst case scenario being "Other Credits". Time will tell.

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