nj pte tax

[bob808]

When I calculate my PTE tax on the New Jersey PTE 100. and I add that to the federal 1120S my PTE tax calculation changes on form PTE 100. It seems there is no way to have the federal PTE tax deducted match the PTE tax on the PTE-100. Thank you.

[JH6 · Accepted solution]

There is a smart worksheet right above line 1 of PTE-100. If you enter the amount of PTE tax deducted on 1120S to line A of the smart worksheet, that will adjust make the federal PTE tax deducted match the PTE tax on the PTE-100. Please let me know if this helps. Thank you. 

[bob808]

I tried that and it changed the tax. Unless I'm doing something wrong. I started with a PTE tax of 209,316 then I put that on the 1120S. That changed the PTE tax to $210,891. If I put the 209,316 on line 1 of the smart worksheet it changes the PTE tax to $229,981. I can plug a number in the other adjustments on the smart worksheet to force it to work. But I think I am missing something. Thank you.

[JH6]

Before you enter PTE tax deduction on line A of the smart worksheet, please check whether line 1 of Form PTE-100 is equal to the federal ordinary income. Line 1 minus line A should equal to federal ordinary income. Please double check if you have made other changes on form PTE-100 after you entered an amount on line A of the smart worksheet. You may have made an override somewhere on the form which can override the calculation. 

[bob808]

Your previous answer of using the line 1 smart worksheet with added back the pte tax worked. Not sure what I did the first time I tried it. Thank for the help.

[Nancy9]

I don't see a smart worksheet above line 1 of the PTE-100 in Proseries?  Do you mean add it to schedule H, line 1a?  If so that means the PTE is a tax based on income and not deductible in NJ, correct?

Also, it is my understanding that a cash basis S-corp cannot deduct the PTE tax paid on the federal until it is paid.  Have you seen any IRS updates that allow it to be reported for the tax year the tax is generated? 

Thanks!