Massachusetts pass-through entities (PTEs), such as partnerships and S corporations, may withhold Massachusetts tax on behalf of their owners. If Massachusetts tax was withheld or paid on your behalf by a pass-through entity, you may claim that amount as a payment on your Massachusetts return.
PTE withholding is treated like any other Massachusetts tax payment and can help reduce your balance due or increase your refund.
Program Entry
Massachusetts Return → Payments → PTE Withholding
Information You'll Need
Taxpayer or Spouse
Select the individual to whom the withholding belongs.
Payer Name
Enter the name of the pass-through entity that reported the withholding.
Payer ID
Enter the Federal Employer Identification Number (FEIN) or other identifying number of the pass-through entity.
Massachusetts Income
Enter the amount of Massachusetts income allocated or distributed by the pass-through entity.
Massachusetts Withholding
Enter the amount of Massachusetts tax withheld on your behalf by the pass-through entity.
How Do I Know If I Have PTE Withholding?
PTE withholding is commonly reported on:
- Massachusetts Schedule 3K-1
- Massachusetts Schedule SK-1
- Other statements issued by a partnership, S corporation, or pass-through entity
The information entered should match the information provided by the entity.
How Does PTE Withholding Affect My Return?
Massachusetts withholding paid on your behalf is treated as a tax payment and may:
- Reduce the amount of tax owed
- Increase your refund
- Offset other Massachusetts tax liabilities
Important Notes
- Create a separate entry for each pass-through entity reporting Massachusetts withholding.
- The payer name, payer ID, Massachusetts income, and Massachusetts withholding should match the information reported by the entity.
- Retain copies of all Schedules K-1 and other pass-through entity statements with your tax records.
- Enter only withholding that was paid to Massachusetts on your behalf.
- Supporting documentation may be required to substantiate the withholding claim.
- Schedule 62-WH may be required to report withholding from Massachusetts K-1 schedules and other pass-through entity documents.