AB 150 Input - PTE California state tax payment & individual state credit

Forum|Forum|4 years ago
December 1, 2021
4 replies
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Where do you input California state tax payments for PTE Income in Lacerte? California passed AB 150, PTEs can now pay state taxes on their income (like a c corp) and it is business deduction on the federal return! On the CA k-1 you should receive a credit which is not refundable. I dont see how to input into lacerte.

Thanks in advance.

Lacerte Tax

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sjrcpa

Level 15

You're trying to do this in the 2021 software?

I'd say it's not ready for prime time yet.

I don't think CA has figured out the nuts and bolts of it yet either - @George4Tacks, @abctax55,

@Just-Lisa-Now- ?

The more I know the more I don’t know.

L

LA CPAAuthor

Level 3

https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/october-2021/pass-through-entity-elective-tax.html

Agreed! See link above the forms are not prepared yet.

sjrcpa

Level 15

I hope they stick to their timetable. Last year MD didn't release forms or guidance til around July, then pulled it back, then released new versions, etc. Then the software had to be updated/corrected. I don't think we could file a return with the PTE tax until September.

The more I know the more I don’t know.

R

rcordovacpa

Level 2

Re: CA AB-150: Will Lacerte automatically compute the 9.3% of net CA pass through income, or does the figure have to be manually input (with perhaps a diagnostic if the amount is not in accord with the proper percentage)?

abctax55

Level 15

@rcordovacpa

Probably.. maybe.

It's a bit difficult for Intuit to do the programming until the FTB responds to numerous unanswered questions. Please visit the (free) Spidell message board & read some of the AB 150 threads.

HumanKind... Be Both

R

rcordovacpa

Level 2

But once Lacerte perfects the programming for CA AB-150 will the software actually compute what the 9.3% withholding should be?

C

COGS

Level 3

Now that we have the 12/9 update, let's revisit the question. I can see in the individual K-1 area "Credits And Witholding" you can put it in there. In the Partnership and S Corp. Modules is there a place for it there yet? If, that is not programed yet, do we have a way to mimic the way the AMT calc will work? I have not really looked at this issue other than hearing that the AMT issue for California is a very big issue. So, jut putting it out there to see if there is a good way to punch through the impact of paying the tax at this point.

B

bacajr

Level 2

I watched the Spidell seminar yesterday and they have the Schedule P completed. It shows the credit as code 999, but I could not replicate on my lacerte 2020 program. Any ideas?