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How to enter New Mexico PTE in ProSeries

SOLVEDby IntuitUpdated 1 month 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:

IndividualPartnershipCorporateFiduciaryTax year 2022

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.

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