Where to Enter MD Elective PTE Taxes on 8825

Forum|Forum|3 years ago
March 26, 2023
1 reply
12 views

Where do I enter MD Elective PTE Taxes on the 8825 (1065) so the state (Maryland) knows to add back the PTE taxes when calculating PTE income subject to PTE taxes? Where do I enter the related income from a prior year overpayment?

Thank you!

Lacerte Tax

This topic has been closed for replies.

Best answer by sjrcpa

Enter on the tax line. If they don't get added back on MD, make a manual adjustment.

T

TaxGirl3Author

Level 5

Can anyone help? @sjrcpa ?

Thank you!

sjrcpaAnswer

Level 15

Enter on the tax line. If they don't get added back on MD, make a manual adjustment.

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

T

TaxGirl3Author

Level 5

Thanks for the response! Edit:

Option 1. It doesn't get added back to MD so I made an override in screen 38.271 . That somehow changes the percentage of ownership on line 5a of Form 511 (I guess that's based on federal income), so I overrode the percentage of ownership as well.

Option 2. Use the regular deductions screen (Screen 13). Under 'Taxes' enter MD PTE taxes as a state tax and then subtract it in other taxes with a -1 in 'State if different'.

I ended up going with option 1. Option 2 incorrectly uses the higher income amount (net income + MD tax addback) on lines 1 and 2 of Section A of the K-1. Option A only does that to line 2.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded