How to enter Iowa PTE in ProConnect Tax

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.

Down below we'll go over how to enter PTE for Iowa on Individual, Partnership, S Corporate and Fiduciary returns in ProConnect Tax.

Table of contents:

Individual

1. From the Input Return tab, go to Income ⮕ Passthrough K-1's. From this menu, select the type of activity:
   • Partnership Info (1065 K-1)
   • S-Corp Info (1120S K-1)
   • Estate or Trust Info (1041 K-1)
2. From along the top of the workspace, select State & Local and scroll down to the Iowa Credits section.
   • If State & Local appears to be missing from along the top of the workspace, it is likely a matter of screen resolution. In this case, select it from the ⋮ menu instead.
3. Under the Schedule CC subsection, enter the amount from IA Schedule K-1, Part III in the Amount of credit received from PTE field.
   • This amount will flow to the IA Schedule CC.

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Partnership

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident partner, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Partner Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2023 Composite Estimated Tax.

In the event that the partnership receives a credit on a K-1, go to the Passthrough K-1's workspace and select State & Local from along the top, and under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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S-Corporation

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident shareholder, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Shareholder Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2023 Composite Estimated Tax.

In the event that the S-corporation receives a credit on a K-1, go to the Passthrough K-1's workspace and select State & Local from along the top, and under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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Fiduciary

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident beneficiary, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Beneficiary/Grantor Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2023 Composite Estimated Tax.

In the event that the estate or trust receives a credit on a K-1, go to the Passthrough K-1's workspace and select State & Local from along the top, and under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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