Iowa allows certain taxpayers to claim a credit for taxes paid on their behalf by a pass-through entity (PTE). These credits are generally reported to the taxpayer by the entity and help prevent the same income from being taxed twice.
Program Entry
Iowa Return → Credits → IA Composite and PTET Credits
The Following Information Can Be Added
Composite Credit or Pass-through Entity Tax (PTET) Credit
Select whether the credit being entered is a Composite Credit or a Pass-through Entity Tax (PTET) Credit.
- A Composite Credit is generally reported when a pass-through entity files and pays Iowa tax on behalf of its owners.
- A PTET Credit is generally reported when a pass-through entity elects to pay Iowa tax at the entity level and passes the credit through to its owners.
Pass Through Entity Name
The name of the partnership, S corporation, LLC, trust, or other pass-through entity that reported the credit.
Pass Through Entity FEIN
The Federal Employer Identification Number (FEIN) of the pass-through entity reporting the credit.
Amount of Credit Received from PTE
The amount of Composite Credit or PTET Credit allocated to the taxpayer by the pass-through entity.
Received Credit Amount Through a Disregarded Entity
Indicates whether the credit was received indirectly through a disregarded entity rather than directly from the pass-through entity that generated the credit.
Notes
- Information entered in this section should match the information provided by the pass-through entity.
- A separate entry should be made for each entity reporting a Composite Credit or PTET Credit.
- Taxpayers should retain all supporting documentation, including Schedule K-1s and credit statements received from the entity.
- The entity name, FEIN, and credit amount should match the information reported by the pass-through entity.