If you have a Partnership or S-Corp registered in NY, you can elect to be taxed by the state through the business as a work around to the $10,000 cap on the state and local tax deduction on your personal return at the federal level.
It necessitates us doing an extra return for you in NY and will involve paying more state tax through your business than you have in the past. But, on the personal return, it will help bring down your federal tax bill, and you will get a credit for the extra tax you paid through your business at the state level, so your overall state tax payments will not be affected.
To take advantage of this for 2022, you must make the election through your business’s NY Online Services Account by March 15, 2022.
Making the PTET Election
After you log in using your business’s Online Services Account, make sure you are on the Account Summary homepage.
- If you are an S--Corp: select the Services menu and choose Corporation tax from the options, and then choose PTET web file from the expanded menu.
- If you are a Partnership: select the Services menu and choose Partnership tax from the options, and then choose PTET web file from the expanded menu.
On the Form Selection page, choose Pass-through entity tax (PTET) annual election.
Paying the Mandatory PTET Estimated Payments
Unlike other taxes you may have run into on your business and personal returns, paying the PTE tax during the calendar year is required to get the full benefit.
The deadlines are:
- March 15
- June 15
- September 15
- December 15
We will be available in November and early December to help estimate the total tax you owe for the year if you choose to pay all at once, but we recommend paying estimated tax payments for the PTET through the business to avoid paying interest and/or penalties on underpayment.
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