I know that TurboTax is working on finalizing all of the state forms and such but is there currently a place in Turbotax home and business 2021 (windows desktop versions) to mark on my personal return the taxes my s corp paid to ny through the PTET program. (I purchased and use turbotax business to file those taxes and get my k-1).
My understanding is that the ptet is considered a business expense (taxes) that reduces federal net income, but NY requires inputting the PTET number as an adjustment to the federal net income number so that state taxes can be properly counted. Essentially the federal and state income numbers will not be the same. This way the amount of the state tax is not taxed on the federal level.
Also to confirm, my s corp pays me a reasonable salary but it is my understanding that the PTET calculation is based on the business income after wages have been paid because state taxes on these wages have already been deducted by the s corp as a business expense.
https://www.berdonllp.com/the-nys-pass-through-entity-tax-pay-this-tax-to-pay-less-tax/
