The California PTET is entered only under the State taxes topic for an individual return. You should see the amount of tax paid on California Schedule K-1 Line 18e.
After you enter a K1 in your federal return, there will be questions that will generate when you begin your California State Return. As you navigate through your state return:
- You will reach an entry that is entitled Partnership Schedule K-1 Summary. Select edit next to the K1. There will be some preliminary questions to enter.
- Then go to Partnership K-1 Adjustments. Continue past the first page, to go to the second page in the adjustments screen.
- In the second page, scroll to the section where it says credits and there will be an entry to make that says 15f-Form 3804-CR Pass-Through Entity Elective Tax Credit.
- The amount you enter here will appear on Form 3804-CR Part I.
If you are preparing Form 1120S for an S-Corp in TurboTax Business, you can trigger the creation of Form 3804 (and related worksheet) using Forms mode. These entries also complete Schedule K-1 for the shareholders.
- Click Forms in the TurboTax header.
- Go to the Information Wks under California S Corporation.
- Check the box under Part V >> Form 3804 Pass-Through Entity Elective Tax.
- On the Sch K-1 Wks in the California return, check the box at the bottom of each partner to report the partner's consent for the PTE elective tax.
- Return to the Information Wks and click "QuickZoom" beside either Form 3804 or Form 3804 Worksheet to review the calculations.
- To report and allocate the PTE payment to CA Sch K-1, open Form 100S p4-6.
- Scroll down to Schedule K Line 13d and enter "PTE Tax Credit" on the first open line.
- Enter the total tax paid in the amount box.
- The entry from Form 100S will be allocated to the individual K-1s on Line 13 d, with additional information on page 2.
- Be sure to address any form errors (red exclamation marks) before leaving Forms.
[edited to add K-1 entries 3/25/2024 | 9:26am PDT]