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How to enter Iowa PTE in ProSeries

SOLVEDby Intuit3Updated 1 year ago

This article will help you report the Iowa elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in ProSeries.

Table of contents:

To claim the credit on the 1040 return:
To generate PTE on a 1065:
To generate PTE on a 1120S:
To generate PTE on a 1041.

What's new for tax year 2022?

  • The IA PTE-C Iowa Composite Return is new for tax years beginning on or after January 1, 2022.
  • Iowa Code section 422.16B imposes composite return filing and tax remittance obligations on entities taxed as partnerships, S corporations, estates, or trusts for tax years beginning on or after January 1, 2022.
  • For additional information, see the department's guidance.

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To claim the credit on an individual return:

  1. Open the Iowa state return.
  2. Press F6 to bring up Open Forms.
  3. Type 148 TP and click OK for taxpayer copy or 148 SP and click OK for spouse copy of the Form IA 148.
  4. Scroll down to Part IV - Pass-Through Entity Information from Schedule K-1.
  5. Enter the information from the K-1 received.

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To generate the PTE for a partnership:

The IA PTE-C and IA 96-048 Voucher (PTE-C) generate automatically when there is a nonresident partner, and as long as a Nonresident Composite tax exempt code on Form IA PTC-C is not selected on the Schedule K-1 Worksheet.

If the IA 1065 is not being e-filed but the company needs to e-file the IA PTE-C only:

  1. Open the Iowa Partnership Information Worksheet.
  2. Scroll down to Part VII - Electronic Filing Information.
  3. Check the box for "File Form IA PTE-C stand alone return, electronically".

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To generate PTE for an S corporation:

The IA PTE-C and IA 96-048 Voucher (PTE-C) generate automatically when there is a nonresident shareholder, and as long as a Nonresident Composite tax exempt code on Form IA PTC-C is not selected on the Schedule K-1 Worksheet.

If the IA 1120S is not being e-filed but the company needs to e-file the IA PTE-C only:

  1. Open the Iowa S Corporation Information Worksheet.
  2. Scroll down to Part VI - Electronic Filing Information.
  3. Check the box for "File Form IA PTE-C stand alone return, electronically".

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To generate PTE for an Fiduciary:

  1. Open the Iowa Fiduciary Return.
  2. Open the IA PTE-C, p3.
  3. Manually enter the beneficiary information including the Iowa-Source Income from Iowa K-1.
  4. Open the IA PTE-C p1.
  5. Above line 1 enter the Total number of members, Number of Iowa resident members, Number of Iowa nonresident members, and Number of Iowa nonresident members included on this PTE-C.

If the IA 1041 is not being e-filed but the company needs to e-file the IA PTE-C only:

  1. Open the Iowa Fiduciary Information Worksheet.
  2. Scroll down to Part V - Electronic Filing Information.
  3. Check the box for "File Form IA PTE-C stand alone return, electronically".

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