Illinois PTE reporting

Thanks. That's what I'm thinking, so it is a circular calculation (the accrual reduces the tax liability and on and on and on) . And Illinois is shooting itself in the foot by reducing it's tax revenues. Just what they need.

Thanks. As a sole practitioner, it's nice to be able to discuss problems like this that are arising. I'm dealing with some pretty large numbers with this PTE deduction and people are looking to me for advice. I understand the concept behind passing these laws, but they haven't thought everything through as to the accounting, reporting, and consequences. I keep looking for guidance from Illinois but so far nothing.

thanks to all for this discussion - let's keep it going.  MN is similiar to IL - first year for PTE - we had people pay in before  12-31-21 to get a deduction for the amount paid in 2021 returns. I see that Lacerte is calculating the tax - I also see the software gives the credit for tax paid - withholding on the MN K-1 - the form shows the withholding credit for those who paid or not so that cannot be right.  watch for that on IL

Here is the big question we are asking in MN - say you have 4 family members who are in a partnership - the partnership owns stocks - the partnership quailfies for PTE - the partnership takes a $500000 gain on stock sale - if it elects the PTE - where does one deduct the PTE on the partnership return?