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Unable to find Iowa Schedule CC

I am part owner of a farm LLC in Iowa.  Iowa made a big change this year for LLCs and other Passthru Entities with nonresident partners:  https://tax.iowa.gov/iowa-composite-returns-2022.  There is a new form, PTE-C, along with several other associated forms that need to be submitted for business taxes.  I took care of all this through TT Business, which produced an Iowa K-1 form for each of the partners.  In this case the business ends up being charged almost 2X the normal liability for each member.  Then it's up to each member to file a personal Iowa tax return to get the excess refunded through a credit.  This credit should be on Schedule CC.

 

I'm using TT Premier for my individual taxes.  It was last updated yesterday.  I've been through all the menus and cannot locate where I enter this Iowa K-1 form credit and produce Iowa Schedule CC.  This is somewhat infuriating since the business ends up paying almost 2X my Iowa liability from Iowa form 1065, and then on top of that I end up paying the normal out of state Iowa tax again on my personal Iowa 1040.  This turned a relatively simple process in previous years into something far more complicated with multiple extra forms to file.  The unsuspecting filer could pay Iowa almost 3X the tax due if he wasn't paying attention.

 

It looks like I have three options:

- Figure out where to enter the K-1 credit in TT Iowa

- Abandon TT for personal Iowa taxes and fill out the forms by hand

- Elect out of the whole PTE-C method for 2022 by having all partners sign the Nonresident Member Composite Agreement.

 

Any suggestions as to how to enter the K-1 credit in TT Premier would be greatly appreciated.  Thank you.

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Unable to find Iowa Schedule CC

Thank you for the reply.

 

I think the best option for us is to opt out of the PTE-C form.  There is a Nonresident Member Composite Agreement form on the Iowa web site that allows partners to opt out of the PTE-C form.  This simplifies the process, eliminates the PTE-C form, and simplifies accounting.  The partner liability comes out the same with or without the PTE-C.  TT Business allows me to override and zero out the PTE-C amount paid for partners on line 20 of the Iowa form 1065 Schedule K, and also on part III of the partners' Iowa K-1 forms.  

 

Iowa does not seem to allow out of state residents to efile anyway, so in any case I will have to print out and mail the forms.  

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2 Replies
PatriciaV
Expert Alumni

Unable to find Iowa Schedule CC

Although TurboTax Business Iowa Forms Available for Partnerships does list the Composite Return, no Schedule CC appears in the list of TurboTax Individual Iowa Forms

 

You may wish to e-file your federal tax return but print and mail your Iowa state return. You can download the necessary forms from this link: Iowa Department of Revenue Forms 

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Unable to find Iowa Schedule CC

Thank you for the reply.

 

I think the best option for us is to opt out of the PTE-C form.  There is a Nonresident Member Composite Agreement form on the Iowa web site that allows partners to opt out of the PTE-C form.  This simplifies the process, eliminates the PTE-C form, and simplifies accounting.  The partner liability comes out the same with or without the PTE-C.  TT Business allows me to override and zero out the PTE-C amount paid for partners on line 20 of the Iowa form 1065 Schedule K, and also on part III of the partners' Iowa K-1 forms.  

 

Iowa does not seem to allow out of state residents to efile anyway, so in any case I will have to print out and mail the forms.  

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