PatriciaV,
I want to see if you or someone else can answer my question.
I am living in VA and using TurboTax business to file my LLC tax return. I am also very confused on the PTET reporting on K-1. I elected PTET for 2022 tax year and paid it with my 2022 VA business tax return last year. Based on the following post I read last year (the only post I could find on the internet regarding reporting PTET on K-1), I need to report the PTET for 2022 tax year I paid in 2023 in the 2023 tax return. I was not supposed to report it in the 2022 tax return. Is this right? I use cash method for accounting.
https://ttlc.intuit.com/community/business-taxes/discussion/if-the-partnership-pays-ptet-in-april-20...
Starting tax year 2023, the VA Taxation requires entities to pay the estimate PTET in the same year. So I paid X amount of estimate PTET in 2023 for the 2023 tax year. Now should I report this estimate PTET I paid last year on the K-1 of 2023 tax return? I am thinking this can make sense because this is similar to the personal state income tax withhold. You get the deduction first. If it is an overpayment you will pay the tax on the overpayment next year.
