Where can you enter the CA Pass-through entity tax(PTET) deduction on personal federal form 1040?

[jjim]

A little more information. I made a payment for the CA PTET as a S Crop but I do not see the amount get deducted on the K-1. Where do I enter that amount on the 1120S so it will reflect correctly on the 1120S K1? 

[PatriciaV]

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:

1. 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.
2. Then go to Partnership K-1 Adjustments. Continue past the first page, to go to the second page in the adjustments screen.
3. 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.
4. 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.

1. Click Forms in the TurboTax header.
2. Go to the Information Wks under California S Corporation.
3. Check the box under Part V >> Form 3804 Pass-Through Entity Elective Tax.
4. 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.
5. Return to the Information Wks and click "QuickZoom" beside either Form 3804 or Form 3804 Worksheet to review the calculations.
6. To report and allocate the PTE payment to CA Sch K-1, open Form 100S p4-6.
7. Scroll down to Schedule K Line 13d and enter "PTE Tax Credit" on the first open line.
8. Enter the total tax paid in the amount box.
9. The entry from Form 100S will be allocated to the individual K-1s on Line 13 d, with additional information on page 2.
10. 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]