ProConnect HelpIntuit HelpIntuit

How to enter New Mexico PTE in ProSeries

by Intuit Updated 7 months ago

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

Select your tax type:

What's new for tax year 2023?

  • Starting with tax year 2023, pass-through withholding will no longer be reported on the RPD-41367, PTW-D Pass-through Entity Withholding Detail Report. This form has been retired. Withholding tax from distributions to owners is now reported directly on the Form PTE on schedule PTE-D, Detail of Owner Withholding, Composite Tax and Entity-level tax.
  • In addition, a separate section of the tax return has been created for those electing to file entity-level tax. House Bill 368 passed in the 2023 regular session created new provisions for the determination of net income for an entity electing to file entity-level tax. This amount is calculated in a different manner than net income for withholding.

To claim the credit on an individual return:

  1. Open the New Mexico state return.
  2. Press F6 to bring up Open Forms.
  3. Type 9 and select OK to open the Form RDP-41359.
  4. Complete the information from the RDP-41359 received.
  5. Check the box Check if owner's share of pass-through entity-level tax paid.
  6. The amount entered as New Mexico state tax withheld will flow to the PIT-ADJ line 5.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

To generate the PTE for a partnership:

  1. Open the New Mexico return.
  2. Open the Form PTE.
  3. Above question A check the Mark if electing to file entity-level tax checkbox.
  4. The entity level tax will now show on Form PTE line 29.
  5. Go to the Schedule K Equivalent.
  6. Complete Line 1b.
  7. Open the Schedule K-1 Worksheet.
  8. For each partner check Yes or No for Subject to Entity Level Tax.
  9. The K-1 Equivalent will now show line 5.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

To generate PTE for an S corporation:

  1. Open the New Mexico return.
  2. On the New Mexico S Corporation Information Worksheet, Part II check the S Corporation is electing to be subject to Pass Through Entity Tax box.
  3. Open the Schedule K-1 Worksheet.
  4. For each shareholder check Yes or No for Subject to Entity Level Tax.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

To generate PTE for an Fiduciary:

  1. Open the New Mexico return.
  2. Open the FID-1
  3. Check box K for Mark if electing entity-level tax.
  4. Complete line 22.
  5. Open the Beneficiary Information Worksheet.
  6. For each beneficiary check Yes or No for Subject to Entity-Level Tax.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

To claim the credit on an individual return:

  1. Open the New Mexico state return.
  2. Press F6 to bring up Open Forms.
  3. Type J and click OK to open the Form PIT-ADJ.
  4. Scroll down to line 25.
  5. Enter the amount of Exemption for net income subject to the Entity Level Tax.

To generate the PTE for a partnership:

  1. Open the New Mexico return.
  2. Open the RPD-41367 p1.
  3. On question D mark the Entity Level Tax box.
  4. Review the rest of the form.

To generate PTE for an S corporation:

  1. Open the New Mexico return.
  2. Open the RPD-41367 p1.
  3. On question D mark the Entity Level Tax box.
  4. Review the rest of the form.

To generate PTE for an Fiduciary:

  1. Open the New Mexico return.
  2. Open the FED-D.
  3. On line A mark the Original Return box.
  4. On line C mark the PTE box.
  5. On question D mark the Entity Level Tax box.
  6. Review the rest of the form.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

ProSeries Basic 2022ProSeries Professional 2022

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

More like this

Dynamic AdsDynamic Ads