Iowa allows certain taxpayers to claim credits for taxes paid on their behalf by a pass-through entity (PTE). These credits help prevent the same income from being taxed twice and are generally reported to the taxpayer on a Schedule K-1 or other documentation provided by the entity.
Program Entry
State → Credits → Composite and PTET Credits
Composite Credit
A credit for Iowa income tax paid on the taxpayer's behalf through a composite return filed by a pass-through entity, such as a partnership or S corporation.
Pass-Through Entity Tax (PTET) Credit
A credit for Iowa tax paid at the entity level by a pass-through entity that elected to pay Iowa Pass-Through Entity Tax (PTET).
You will need the following information:
- Pass-Through Entity Name
- Pass-Through Entity FEIN
- Amount of Credit Received from PTE
- Credit Received Through a Disregarded Entity
Notes
- Composite and PTET credits are typically reported to the taxpayer on a Schedule K-1 or similar tax document.
- A separate entry may be needed for each pass-through entity that provides a credit.
- Retain all supporting documentation provided by the entity, including Schedule K-1s and credit statements.
- The entity name, FEIN, and credit amount should match the information reported by the pass-through entity.