NYS put in a new law, that a sub s corp can elect to pay tax at the corp. level. Is this show up as an option of the NYS sub S tax form?

[edrotman]

I can't find where I select that I want the tax calculated on the NYS sub S return.

[IntuitMark304]

I am assuming you are referencing the pass-through entity tax (PTET) in New York.  Per NY guidance the election/tax calculation must be made online thru their Business Portal.  https://www.tax.ny.gov/online/

The software has been updated for PTET credits to report the associated credits on the shareholder's K-1. To enter the PTET credits and taxable income: 

Navigate to the bottom of the CT-34-SH, p1-3 and a smart worksheet has been added.  In this smart worksheet, the user can enter the PTET information and the amounts will be distributed to the K-1s on a prorata basis.  You will see this information in the Supplemental Stmt at the bottom of each shareholder K-1.  

[edrotman]

I assume I have to prepare the nys ptet return on nys website,  after I do that do I use the nys s corp intuit software to prepare the k1,  which will show the credit when I complete the sh worksheet? 

[IntuitMark304]

You are correct.  The PTET tax is paid online thru the NY portal.  Then the entity still would prepare a IT-204 for partnerships or a CT-3-S for scorporations to generate K-1s for the owners.  

PTET Credits would be reported and distributed to the owners on the respective IT-204 or CT-3.  

[edrotman]

Let me try to understand the ptet filing.  My client made a payment for 2021 by setting up a online account.  I assume I have to go online & complete a pter for the client.  With this info I would prepare. The nys s corp return reflect the credit & pass thru the net income to his personal nys return?  Correct? 

[IntuitMark304]

Here is the information from NY's website:  https://www.tax.ny.gov/bus/ptet/#:~:text=The%20PTET%20is%20an%20optional,or%20after%20January%201%2C....

A high level summary is as follows but I still encourage you to read NY's guidance carefully:

1.  an authorized person to opt into the PTET tax via the online services account (review their definition of authorized person)

2.  file an annual PTET online in the services account (there is no requirement that an authorized person file the return)

3.  The PTET credit generated by the PTET filing would then be reflected on the CT-3-S or IT-204 filing and distributed to the partners or shareholders.