The New York State Department of Taxation and Finance is making available the option for taxpayers who have elected into the Pass-Through Entity Tax (PTET) for the 2021 tax year to make estimated payments online, so that entities are able to claim the federal deduction in 2021.
If a taxpayer elects to pay the PTET and obtain a deduction for year-end 2021, the payment must be paid by ACH debit and submitted by December 31, 2021.
To make an estimated NYS PTET payment online, taxpayers or tax professionals will need to log in to their (or their client’s) NYS Business Online Services account and follow the prompts to Account Summary and “PTET web file” from the Corporation tax or Partnership tax expanded menu. From there, select “Pass-through entity tax (PTET) estimated payment.”
ACH debit block information: If a taxpayer has debit blocks on their bank account—even if they have already authorized payments for other taxes to the Tax Department—they should:
- Speak with their bank before setting up a debit payment.
- Provide the ACH company ID and name for the type of tax payment they need to make:
- Type: Pass-through entity tax
- ACH Company ID: 146013200
- ACH Company Name: NYS DTF PTET
Important reminder: Pass-through entities are not required to make estimated PTET payments for 2021 in 2021, but must do so in order to be able to claim the federal deduction for 2021.
Members, shareholders, and partners must continue to make their personal income tax payments without regard to the PTET credit they plan to claim on their 2021 PIT return.
CBIZ Recommendation
Taxpayers who have elected into the PTET for 2021 should consider taking advantage of the ability to make these payments prior to year-end, in order to recognize the benefit of the federal deduction provided by this election. While estimated payments are optional for 2021, they will be due quarterly for tax years beginning on or after January 1, 2022.
For additional information or assistance, please contact your CBIZ State and Local Tax professional.
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