How to enter New York PTE tax in Lacerte

Table of contents:

To claim the credit on an Individual return:

For Tax Year 2024

Beginning with Tax Year 2024, the input for the Pass-through entity tax Credit (IT-653) has changed. The credit information has been removed from Screen 53.091, New York Credit Forms and can be entered directly in the Passthrough K-1 screen. Follow the steps below to enter the credit information

• Go to Screen 20, Passthrough K-1s
• Select the appropriate K-1
• Go to the New York (Partner, Shareholder, Beneficiary) Share of Credits and Adjustments
• In the Additions section, select Number EA-219 for the state addback and Number EA-222 for the city addback
• Enter the Total Amount and the New York State Allocated Amount for each entry

For Tax Years 2023 and 2022

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:

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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