The procedure for making a PTET election will be different for tax year 2022 and for tax years 2023 and later.
Tax Year 2022
The Department has developed a 2022 PTET form that is filed online through GovConnectIowa. Pass-through entities use this 2022 PTET form to make the PTET election, compute and report the PTET due, and compute and report the PTET credit available to each owner. This is the only method to make a PTET election for tax year 2022. The Department will not be modifying any existing 2022 income forms or schedules.
It is strongly recommended that a pass-through entity logs into the GovConnectIowa account to complete their 2022 PTET form. However, there is an option to Quick File the 2022 PTET form without logging in.
The 2022 PTET form on GovConnectIowa is a supplement to the pass-through entity’s 2022 IA 1065 partnership return or 2022 IA 1120S S corporation return. The entity must file its 2022 IA 1065 or 2022 IA 1120S on or before the date it files its 2022 PTET form. In order to complete the 2022 PTET form on GovConnectIowa, the pass-through entity will need income information and other data reported on its filed 2022 IA 1065 or 2022 IA 1120S. If the electing pass-through entity is required to amend its 2022 IA 1065 or 2022 IA 1120S at a later date, the entity will also be required to amend its 2022 PTET form on GovConnectIowa.
Pass-through entities required to file a tax year 2023 short-year return before the 2023 Iowa tax forms become available are also eligible to make a 2023 PTET election using the 2022 PTET form on GovConnectIowa.
Tax Years 2023 and Later
Pass-through entities will be allowed to make a PTET election for a tax year in one of two ways:
- Make the election directly on the pass-through entity’s IA 1065 partnership return or IA 1120S S corporation return.
- Submit a PTET election form prior to filing the Iowa return by logging into the pass-through entity’s partnership or S corporation account on GovConnectIowa.
- This PTE election form will be made available at a later date.
- This PTE election form will only record the entity’s PTET election; the electing entity’s PTET liability will be computed on the IA 1065 or IA 1120S.
Pass-through entities are encouraged to create a GovConnectIowa logon and gain access to their tax accounts. For more information on gaining access to your accounts, visit our GovConnectIowa Help page.