Recent PTET Changes

New York State recently announced a useful change to the pass-through entity tax (PTET) for entities that elect to be subject to both the New York State PTET and the New York City PTET.

If an entity has an overpayment of the New York State PTET, that overpayment will now be credited to a balance due for the New York City PTET, and vice-versa. Any net overpayment that exceeds the combined amount of New York State PTET and New York City PTET will still be refunded to the entity via a paper check.

Crediting overpayments between the two types of PTET is an improvement. For the 2022 tax year, New York treated the two types of PTET as separate taxes and would not apply overpayments from one toward a balance due for the other.

New York also provided other updates to its frequently asked questions about the pass-through entity tax (PTET) at https://www.tax.ny.gov/bus/ptet/faq.htm

Our tax news has numerous other posts related to the pass-through entity tax. Search our tax news archive for PTET to see these earlier posts.

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