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KS K-120S PTE Tax?

Within Turbotax there is a "Credit for Tax Paid on K-120S" in which I paid in last year as an estimated PTE Tax.  It wants me to list amounts from the K-120S Line 41 but that line is for "overpayment from original return" only.  Is it line 42 that is being asked for?  Not sure where else to enter the PTE Tax for line 26 of the K-40.

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CatinaT1
Employee Tax Expert

KS K-120S PTE Tax?

Were you able to find an answer to your question?

 

In doing some research on this, I'm wondering if this FAQ from the State of KS helps clarify. The document refers to tax year 2022 but is still applicable to tax year 2023 from what I can tell.

 

#17 states:

When exercising the SALT Parity election, credits attributable to the pass-through entity are required to be taken at the entity level. However, when reporting the amount of ‘Credit for tax paid on the K-120S’ (Line 26 on the K-40 and Line 16 on the K-41), taxpayers are instructed to use the net tax paid on the K-9 (Statement of Partnership or S Corporate Tax Paid) issued to the individual partner, individual shareholder, or trust. In following this practice, the benefit of the refundable and non-refundable tax credits taken on the K-120S are lost to individual partners, individual shareholders, and trusts when filing their respective returns. Is this the intended result of the legislation? No, for tax year 2022, the amount of ‘Credit for tax paid on the K-120S’ (Line 26 on the K-40, and Line 16 on the K-41) is the amount of tax reported in the box entitled ‘Kansas Tax @ 5.7%’ found in Part C of the K-9. By following this methodology, the benefits of the tax credit will be realized by the individual partners, individual shareholders, and trust.

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2 Replies
CatinaT1
Employee Tax Expert

KS K-120S PTE Tax?

Were you able to find an answer to your question?

 

In doing some research on this, I'm wondering if this FAQ from the State of KS helps clarify. The document refers to tax year 2022 but is still applicable to tax year 2023 from what I can tell.

 

#17 states:

When exercising the SALT Parity election, credits attributable to the pass-through entity are required to be taken at the entity level. However, when reporting the amount of ‘Credit for tax paid on the K-120S’ (Line 26 on the K-40 and Line 16 on the K-41), taxpayers are instructed to use the net tax paid on the K-9 (Statement of Partnership or S Corporate Tax Paid) issued to the individual partner, individual shareholder, or trust. In following this practice, the benefit of the refundable and non-refundable tax credits taken on the K-120S are lost to individual partners, individual shareholders, and trusts when filing their respective returns. Is this the intended result of the legislation? No, for tax year 2022, the amount of ‘Credit for tax paid on the K-120S’ (Line 26 on the K-40, and Line 16 on the K-41) is the amount of tax reported in the box entitled ‘Kansas Tax @ 5.7%’ found in Part C of the K-9. By following this methodology, the benefits of the tax credit will be realized by the individual partners, individual shareholders, and trust.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

KS K-120S PTE Tax?

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