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How to enter Maryland PTE tax in Lacerte

by Intuit• Updated 4 months ago

This article will help you report the Maryland passthrough business alternative income tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in Intuit Lacerte.

These returns are due on September 15, 2024. For tax year 2022 and prior see here.

For tax year 2023:

To claim the credit on an Individual return:

  1. Go to Screen 20, Passthrough K-1s.
  2. Select the Partnership or S-Corporation K-1 that reported a credit.
  3. Scroll down to the Maryland Pass-through Entity Member's Information section.
  4. Complete the relevant PTE fields under the Nonresident/Entity Election section.
  5. Go to Screen 53.271, Maryland Credits
  6. In the Maryland Credits section, enter PTE Tax paid on resident members' distributative/pro rata share of income

To generate the PTE for a Partnership:

  1. Go to Screen 37.271, Maryland Miscellaneous Information.
  2. Check the box PTE has made the irrevocable election for Tax Year 2023 to remit tax with respect to all member's shares to generate Form 511.
  3. For any partner-specific overrides, go to Screen 32.1, Partner Miscellaneous Info and complete the related fields under the Maryland Miscellaneous section.
  4. For additional inputs at the Maryland Schedule K level, go to Screen 38.271, Maryland Schedule K for the following:
    • Distributive or pro rata share of income (Pass-through entity taxable income, if 511) [O]
    • Non-Maryland income (separate accounting)
    • Overpayment applied from 2020 (Form 511)
    • Overpayment applied to next year (Form 511)

To generate the PTE for an S-Corporation:

  1. Go to Screen 42.271, Maryland Miscellaneous.
  2. Check the box PTE has made the irrevocable election for Tax Year 2023 to remit tax with respect to all member's shares to generate Form 511.
  3. Complete the following fields where relevant:
    • Total distributive or pro rata share of income (Form 510 line 2) [O]
    • Non-Maryland income (line 3a)
  4. For any shareholder-specific overrides, go to Screen 46.271, Maryland Shareholder Overrides and complete the related fields under the Nonresident Tax Withheld section.

To generate the PTE for a Fiduciary:

  1. Go to Screen 57.271, Maryland Other Credits.
  2. From the Sections list, select Tax paid by an electing PTE.
  3. Enter the Pro rata or distributable amount of PTE tax paid by electing PTE. This amount will flow to Form 504CR.
  4. Go to Screen 58.271, Maryland Taxes.
  5. Enter the Nonresident tax paid by pass-through entities (Ctrl+E).
  6. If needed, Trust amount of PTE [O] may be used to override the calculated amount of PTE withholding for the fiduciary.

For prior tax years:

Because we transitioned forms mid-year in the prior year, Form 510.1 existed. This form is no longer available in tax year 2021.

To claim the credit on an Individual return:

  1. Go to Screen 20, Passthrough K-1s.
  2. Select the Partnership or S-Corporation K-1 that reported a credit.
  3. Scroll down to the Maryland Pass-through Entity Member's Information section.
  4. Complete the relevant PTE fields under the Nonresident/Entity Election section.

To generate the PTE for a Partnership:

  1. Go to Screen 37.271, Maryland Miscellaneous Information.
  2. Check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
  3. For any partner-specific overrides, go to Screen 32.1, Partner Miscellaneous Info and complete the related fields under the Maryland Miscellaneous section.
  4. For additional inputs at the Maryland Schedule K level, go to Screen 38.271, Maryland Schedule K for the following:
    • Distributive or pro rata share of income (Pass-through entity taxable income, if 511) [O]
    • Non-Maryland income (separate accounting)
    • Overpayment applied from 2020 (Form 511)
    • Overpayment applied to next year (Form 511)

To generate the PTE for an S-Corporation:

  1. Go to Screen 42.271, Maryland Miscellaneous.
  2. Check the box Electing to remit tax on resident members’ shares of income to generate Form 511.
  3. Complete the following fields where relevant:
    • Total distributive or pro rata share of income (Form 510 line 2) [O]
    • Non-Maryland income (line 3a)
    • Amount of overpayment from original return to be applied to estimated tax for 2024 (Form 511)
  4. For any shareholder-specific overrides, go to Screen 46.271, Maryland Shareholder Overrides and complete the related fields under the Nonresident Tax Withheld section.

To generate the PTE for a Fiduciary:

  1. Go to Screen 57.271, Maryland Other Credits.
  2. Enter the Pro rata or distributable amount of PTE tax paid by electing PTE. This amount will flow to Form 504CR.
  3. Go to Screen 58.271, Maryland Taxes.
  4. Enter the Nonresident tax paid by pass-through entities (Ctrl+E).
  5. If needed, Trust amount of PTE [O] may be used to override the calculated amount of PTE withholding for the fiduciary.

Both the Form 510 and the Form 511 for tax year 2020 require you to mark checkboxes in order to generate them. If the applicable checkboxes aren't checked, the program will only show the old version of Form 510 and turn off the new forms.

Select the applicable program and module below for instructions on generating the new Form 510 or Form 511.

  1. Go to Screen 37, Miscellaneous Information.
  2. Select Maryland from the left navigation menu.
  3. Check the box labeled Print updated Form 510 or Form 511 (code 41).
    • If you don't also check the box labeled Electing to remit tax on resident members' shares of income, Form 510.1 will generate.
    • Checking this box and the box labeled Electing to remit tax on resident members' shares of income will generate Form 511.
  1. Go to Screen 42, Miscellaneous.
  2. Select Maryland from the left navigation menu.
  3. Scroll down to the Miscellaneous section.
  4. Check the box labeled Print updated Form 510 or Form 511 (code 53).
    • If you don't also check the box labeled Electing to remit tax on resident members' shares of income, Form 510.1 will generate.
    • Checking this box and the box labeled Electing to remit tax on resident members' shares of income will generate Form 511.

Common questions

You can override the starting points for both 510.1 and 511 (line 2) in the program. Select the applicable program and module below for instructions on entering overrides.

  1. Go to Screen 38, Schedule K.
  2. Select Maryland from the left navigation menu.
  3. Enter the override amount in the Distributive or pro rata share of income (Pass-through entity taxable income, if 511) [O] field (code 24).
  1. Go to Screen 42, Miscellaneous.
  2. Select Maryland from the left navigation menu.
  3. Scroll down to the Miscellaneous section.
  4. Enter the override amount in the Total distributive or pro rata share of income (Form 510 line 2) [O] field (code 37).

You can also override amounts for the K-1. The income that gets allocated on the K-1s, lines 1 and 2 are each member’s share of the distributive or pro rata share, including on 511 returns

Select the applicable program and module below for instructions on entering overrides.

  1. Go to Screen 32.1, Schedule K-1 Miscellaneous.
  2. Scroll down to the Maryland Miscellaneous section.
  3. Enter any applicable overrides in this section.
  1. Go to Screen 46.271, Maryland Shareholder Overrides.
  2. Enter any applicable overrides on this screen.

Select the applicable program below for instructions on filing extensions.

Before you start

  • If the state requires an extension to be filed, verify that the extension is marked to be e-filed on Screen 9, Extensions.
  • If a payment is will be made electronically, confirm that the payment is marked to be paid with the extension on Screen 3, Miscellaneous Info./Direct Deposit.

Once the extension is properly marked on the Details tab:

  1. From the E-file menu, select Start E-file Extension Wizard.
  2. In the wizard, make sure that the appropriate state returns are checked to be e-filed.
  3. Proceed forward through the wizard.

Acknowledgments will show up with either an accepted or rejected status, much like they would for an e-filed return.

If you've already filed, you probably don't need to file an amended return. However, if you filed on the old 510 and elected to pay tax on behalf of residents, you should probably file an amended 511.

Refer to the above instructions for generating Form 511 when filing an amended return. The Form 511 won't generate unless you check both the Print updated Form 510 or Form 511 box and the Electing to remit tax on resident members' shares of income box.

Lacerte Tax 2020Lacerte Tax 2021

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