New From NYS~ Pass-Through Entity Tax (PTET)
NYS has come up with a way for taxpayers to pay the NYS tax on the income from their S-Corporation or Partnership at the entity level to get a Federal tax deduction on the entity and a credit for personal NYS taxes, it is called Pass Through Entity Tax (PTET).
To do this for 2021 you MUST set up an online account through NYS for your entity by October 8th, make the Election by October 15th , then make a payment for an estimated tax by December 31th. UNFORTUNATELY, NYS will not allow us to do this for you through our NYS website access.
Assume you estimate to make $50,000 income in 2021, you will pay $3,425 to NYS and get a Federal tax deduction for that amount which if in a 15% personal income tax bracket would save you $513.75 in tax. On the NY return you do not get the deduction but you will get credit for the $513.75 paid when you file your personal income tax return.
This election is not required.