PTET (NY) - confusion on how to enter both the credit and deduction from a K1

[AdamAsks]

Hi, I have two question and appreciate any advice. If I can't figure this out then I'll need to file an extension and use a CPA :(

My K1 from a NY S-corp says:

SUPPLEMENTAL INFORMATION
NYS PASS THROUGH ENTITY TAX DEDUCTION, TO BE INCLUDED AS NYS MODIFICATION ON FORM
IT-225: $ 537
NYS PASS THROUGH ENTITY TAX CREDIT, TO BE INCLUDED ON FORM IT-653: $ 2,606

On the New York IT-653 Schedule A, I entered the $2606 credit. TT copied this amount over to the IT-225 Schedule A - Addition part 1 for Individuals code 21. Shouldn't it be in part for shareholders as I am a significant shareholder of the Sub-S corp that issued the K1?)

Where do I enter the $537 deduction? TT doesn't let me enter it on the IT-225 (In Schedule B - New York State subtractions, (I assume I use same code 219?))

Thank you in advance!

[JosephS1]

The following are the instructions I could find for entering the PTET on the New York state return:

To claim the credit on a 1040:

Select the Forms menu, then click Open Form.

Type in 653 to highlight form IT-653 on the list. Press OK.

Enter the entity name, EIN, and PTET credit amount for each K-1.

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.

To indicate PTE was paid on a 1065:

Open the Sch K-1 Summary.

Scroll down to item Q, "Did the partnership elect to pay the pass-through entity tax?"

Check Yes.

Check the Resident or Nonresident box.

You may want to include the amount of PTE paid on this partner's behalf under Supplemental Information, since it's not reported elsewhere on the NY K-1.

To indicate PTE was paid on an 1120-S:

Open the CT-34-SH, p1-3.

Scroll to the S Corporation Amounts for Shareholders Smart Worksheet at the bottom of the form.

Enter the total Pass-through entity taxable income for all shareholders.

Enter the total PTET credit to be claimed for all shareholders.

The shareholder's portion of PTET taxable income and credit will transfer to their Schedule K-1 Equivalent as supplemental information.

@AdamAsks 

[AdamAsks]

I have both a CREDIT and a DEDUCTION, hence my confusion.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@AdamAsks 

[AdamAsks]

Thank you @AliciaP1 ; I was able to resolve it. The K1 CPA said not to enter the credit, it's already included in the deduction.

[drls1]

Having trouble finding  CT-34-SH on Turbo Tax Business 2022.

Any tips?  Does not come up when searching forms.