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How to enter New York PTE tax in Lacerte

SOLVEDby Intuit356Updated November 14, 2023

PTET returns, payments, and extensions can only be filed through New York State Online Services at this time. Visit the Department of Taxation and Finance for more information. Follow these instructions once the PTE is already paid.

Table of contents:

To claim the credit on an Individual return
To indicate PTE was paid on a Partnership return
To allocate the credit to specific partners
For S-corporate returns
To generate statements with the required information
For Fiduciary returns

To claim the credit on an Individual return:

  1. Go to Screen 53.091, New York Credit Forms.
  2. Scroll down to the Pass-through Entity Tax Credit (IT-653) section at the bottom of this screen.
  3. Enter the following information in the table provided:
    • Name of Entity
    • Employer ID number
    • PTET credit amount

The PTE credit will flow to form IT-201, line 71, as a refundable credit. The program will automatically add-back the credit amount on form IT-225, code 219. If the IT-225 code 219 needs to be adjusted you can use screen 51.091 to override A-219.

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To indicate PTE was paid on a Partnership return:

  1. Go to Screen 32.1, Schedule K-1 Miscellaneous Info.
  2. Scroll down to the New York Information section.
  3. Check the box labeled Elect to pay the pass-through entity tax (PTET) for the current year.
  4. Enter a 1 0r 2 in Residency status assigned for purposes of computing PTE taxable income: 1 = resident, 2 = nonresident.
  5. Repeat these steps for each applicable partner.
    • Tip: Press Ctrl+Down arrow on your keyboard to jump to this same input field for the next partner.
  6. Go to Screen 41.091, New York Credits.
  7. Scroll down to the Other Credit Bases section.
  8. Enter the total PTET paid for all partners in NY State pass-through entity (PTET) credit.

The PTET will be reported on form IT-204, lines 144a-f, with code 653.

To allocate the credit to specific partners:

Use the state's Partnership PTET Worksheet to determine the amount of credit each partner can claim.

  1. Go to Screen 39.1, NY Special Allocations.
  2. On the left-side menu, select the Credit Information folder.
  3. Click on NY State PTET paid.
  4. Allocate appropriate credit amount to each partner.

The partners' credits will flow to IT-204-IP, lines 47a-47f, with code 653.

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For S-corporate returns:

Unlike partnerships, the CT-34 and CT-34-SH don't have a specific question or line where you can indicate PTET.

However, the form instructions state that you must provide a statement to each shareholder listing their pro rata share of:

  • pass-through entity taxable income, and
  • direct share of PTET credit.

To generate statements with the required information:

  1. Go to Screen 45.091, New York Schedule K.
  2. Scroll down to the Pass-Through Entity Tax (PTET) section.
  3. Enter the totals for all shareholders in New York State PTET credit and Income.

Lacerte will use the shareholders' stock ownership to calculate their pro rata share of PTE taxable income and credit, which prints in part 2 of the New York Shareholder Summary. If you need to adjust these amounts:

  1. Go to Screen 46.091, New York Schedule K-1 Overrides.
  2. Scroll down to the Pass-Through Entity Tax (PTET) section.
  3. Enter this shareholder's pro rata share of New York State PTET credit and Income.
  4. Repeat these steps for each shareholder.
    • Tip: Press Ctrl+Down arrow on your keyboard to jump to this same input field for the next shareholder.

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For Fiduciary returns:

  1. Go to Screen 57.091, New York Other Credits.
  2. Under the Refundable Credits section, fill out the table in the Pass-through entity tax credit (IT-653) subsection, completing rows as needed:
    • Name of entity
    • Employer ID number
    • PTE credit amount
    • PTET NYC credit amount

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