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How to enter Connecticut PTE in Lacerte

by Intuit•4• Updated 4 weeks ago

In this article, we'll go over how to enter PTE for Connecticut on Individual, Partnership, and S Corporate returns in Lacerte.

For more PTE resources, check out our dedicated Tax topics page where you'll find a list of all PTE states and the respective content for each.

Table of contents:

‣ Individual
‣ Partnership
‣ S Corporation
‣ Common questions for tax year 2024
   ↳ What happens if Estimated Tax Payments were made in tax year 2023?
   ↳ How will extensions work for tax year 2024?
‣ For tax year 2023 and prior:

Individual

  1. Go to Screen 20.
  2. Under the Passthrough K-1's section select the type of K-1 received.
  3. From the Sections list, select Connecticut Information.
  4. Enter the amount in the Pass-through entity credit field.

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Partnership

Form CT-1065/CT-1120SI

Starting in tax year 2024 every passthrough entity that does business in Connecticut or has income derived from or connected with sources within Connecticut must file Form CT-1065/CT-1120SI regardless of the amount of it's income (loss). Lacerte will generate this form automatically.

If you elect to file the CT-PET:

Starting in tax year 2024 the CT-PET is only applicable if you elect to file it. To generate the CT-PET:

  1. From State & Local select 43 Other Forms, then Connecticut Pass-Through CT-PET to access screen 43.213.
  2. Check the box for Filing CT-PET.
  3. Use the additional entries on this screen to generate CT-PET Extensions and any late payment/filing penalty.
  4. Form CT-PET may require estimated tax payments. To setup estimated tax payments: From State & Local, select 42 Estimates and select Connecticut to access Screen 42.211 Connecticut Estimates.

For Partnership returns, the pass-through entity tax calculation will show on the CT-PET page 2 line 2.

Each Partners share of the tax will show on the CT K-1 Page 2, Part 3 - Connecticut PE Tax Credit Information.

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S Corporation

Form CT-1065/CT-1120SI

Starting in tax year 2024 every passthrough entity that does business in Connecticut or has income derived from or connected with sources within Connecticut must file Form CT-1065/CT-1120SI regardless of the amount of it's income (loss). Lacerte will generate this form automatically.

If you elect to file the CT-PET:

Starting in tax year 2024 the CT-PET is only applicable if you elect to file it. To generate the CT-PET:

  1. From State & Local select 49 Other Forms, then Connecticut Pass-Through CT-PET to access screen 49.212.
  2. Check the box for Filing CT-PET.
  3. Use the additional entries on this screen to generate CT-PET Extensions and any late payment/filing penalty.
  4. Form CT-PET may require estimated tax payments. To setup estimated tax payments: From Screen 10 Estimates using the State column.

For S corporation returns, the pass-through entity tax calculation will show on the CT-PET page 2 line 2.

Each Shareholder's share of the tax will show on the CT K-1 Page 2, Part 3 - Connecticut PE Tax Credit Information.

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Common questions for tax year 2024

What happens if Estimated Tax Payments were made in tax year 2023?

Last year, estimated payments were required to be filed with Form CT-1065/CT-1120SI however, this year, estimates are only required for the CT-PET. 

  • For Form CT-1065/CT-1120SI filers:
    • The composite return no longer requires estimates, nor is the underpayment penalty applicable to the form. 
    • If you made estimated payments last year, and will not be filing the CT-PET form this year, the estimated payments will apply to the composite return.
  • For CT-PET filers: The underpayment penalty does still apply to the CT-PET.
    • If they are filing the CT-PET, the program will apply any estimates first to the tax due with the CT-PET. 
    • If an overpayment exists, the user can choose to apply that overpayment to the next year's CT-PET taxes, to this year's composite return, or get a refund. 
    • The codes for these choices are in the estimates input section, where the estimates made last year are entered.

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How will extensions work for tax year 2024?

  • The CT-1065/CT-1120SI and CT-PET each have their own extension form.
  • CT did provide an additional month for calendar year filers for TY24. See the announcement here.

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To view information for tax year 2023 and prior see click on the below section:

Who Must File a Pass-Through Entity Tax Return

For the 2023 taxable year, every PE that does business in Connecticut or has income derived from or connected with sources within Connecticut must file Form CT‑1065/CT‑1120SI regardless of the amount of its income or loss. The PE must first complete either federal Form 1065, U.S. Return of Partnership Income, or federal Form 1120S, U.S. Income Tax Return for an S Corporation. Information on the federal return is needed to complete Form CT‑1065/CT‑1120SI.

PEs that receive a Schedule CT K‑1, Member's Share of Certain Connecticut Items, from another PE must also file Form CT-1065/CT-1120SI.

Individual

  1. Go to Screen 20 for the Partnership or S corporation.
  2. From the Sections list, select Connecticut Information.
  3. Enter the amount in the Pass-through entity credit field.

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

Partnership

For Partnership returns, the pass-through entity tax calculation is automatically applied and will show on the CT-1065/CT-1120SI page 2 line 2.

Each Partners share of the tax will show on the CT K-1 Page 2, Part 3 - Connecticut PE Tax Credit Information.

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

S Corporation

For S corporation returns, the pass-through entity tax calculation is automatically applied and will show on the CT-1065/CT-1120SI page 2 line 2.

Each Shareholder's share of the tax will show on the CT K-1 Page 2, Part 3 - Connecticut PE Tax Credit Information.

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

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