PTE - S-CORP for MN

[Lisa Johnson]

How do you get the PTE to calculate correctly in the S-Corp for MN.  When I activate the PTE it calculates the max they could off the K-1 but when you put in what they paid and if the amount is less it is adding a penalty and wants the S-Corp to make an additional payment rather than putting what was actually paid and letting it flow to the individuals tax return.  Can someone help with maybe a step I am missing when entering this data.  

I have the payment they made entered on the Sch KS Totals on line 2 and this flows to the SCH PTE line 4 and 5 and then lines 8 -20 are automatically calculating based off the K-1.  Line 21 shows a higher amount that should have been paid which flows to the M8 line 3 and that is added to line 2 the minimum fee then the estimate is taken off of this and it is showing a large balance due as they paid less as it was an estimate.  What I am missing so I so not have this balance on the M8 and so that he K-1 line 33 is the amount paid not the calculated amount.  

[IRonMaN]

You are confusing the federal state tax deduction and the state tax credit.  They get to deduct the amount of state taxes actually paid during the year on the federal return (and add that back on the state).  But they are entitled to the state credit based on actual state income for the year.  As far as penalties go, that is back to basics of if the estimates didn't cover the prior year tax, they are subject to underestimate penalties.