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How to enter Massachusetts ELT (PTE) in ProSeries

by Intuit• Updated 1 week ago

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

Before you start:

  • ProSeries does support electronical filing of the Massachusetts Entity Level Tax and the Form 63D-ELT payment.
  • To determine if your client is eligible for Entity Level Tax (also known as PTE or Pass Through Entity Tax) see PTE Eligibility.
  1. Open the Massachusetts return.
  2. Open Schedule CMS: Credit Manager Schedule.
    1. Press F6 to bring up Open Forms.
    2. Type CMS to highlight CMS.
    3. Click OK to open the Schedule CMS.
  3. Scroll down to Section 4 - Refundable credits received from Massachusetts K-1 schedules.
  4. In 4b select ELTCRD.
  5. Complete the remainder of the columns based on the information from the Massachusetts K-1 schedules.
  1. Open the Massachusetts Partnership Information Worksheet.
  2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
  3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).
  • ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
  • Section 1 of the form 63D-ELT will populate based on the income from the Schedule SK-1 for the total number of qualified partners.
  • The partners portion of the Chapter 63D credit will be completed at the bottom of the Schedule 3K-1 under Partner’s Share of Chapter 63D Refundable Credit.
  1. Open the Massachusetts S Corporation Information Worksheet.
  2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
  3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).
  • ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
  • Section 1 of the form 63D-ELT will populate based on the income from the Schedule SK-1 for the total number of qualified shareholders.
  • The shareholders portion of the Chapter 63D credit will be completed at the bottom of the Schedule SK-1 under Shareholder's Share of Chapter 63D Refundable Credit.
  1. Open the Massachusetts Fiduciary Information Worksheet.
  2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
  3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).
  • ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
  • Section 1 of the form 63D-ELT will populate based on the income from the Schedule 2K-1 for the total number of qualified beneficiaries.
  • The partners portion of the Chapter 63D credit will be completed at the bottom of the Schedule 2K-1 under Beneficiaries Share of Chapter 63D Refundable Credit.
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