IT-204 Reporting of PTET Credit

As discussed on pages 61 through 80 of the Tax Year 2021 M+O=CPE Individual Tax Year-End Workshop Reference Book, entities may elect to be subject to the New York pass-through entity tax (PTET) beginning with the 2021 tax year.

As discussed on page 70, New York State was expected to update its instructions related to the reporting of the credit by partnerships/LLCs.  New York State recently made this update to the instructions for the 2021 version of Form IT-204, Partnership Return, to indicate that the pass-through entity tax credit for the 2021 tax year should be reported in the section for other refundable credits (page 9 of 9, lines 144a to 144f) using code 653.

In addition, New York State also updated the instructions to indicate that the share of each affected partner/member should be reported on Form IT-204-IP, Partner’s Schedule K-1, in the section for other refundable credits (page 4 of 5 lines 47a to 47f) using code 653.

Our earlier posts that discuss the passthrough-entity tax are: January 18, 2022, December 16, 2021, December 14, 2021, December 6, 2021, November 11, 2021, September 30, 2021, September 9, 2021, August 26, 2021 and June 3, 2021.