Massachusetts pass-through entities, such as partnerships and S corporations, may withhold Massachusetts tax on behalf of their owners. This withholding is reported to the taxpayer and can be claimed as a payment on the Massachusetts return.
Program Entry
Massachusetts Return → Payments → PTE Withholding
The Following Information Can Be Added
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 typically 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 in this section should match the information provided by the entity.
How Does This Affect My Return?
Massachusetts withholding paid on your behalf is treated as a tax payment and may:
- Reduce the amount of tax owed;
- Increase the amount of your refund; or
- Offset other Massachusetts tax liabilities.
Notes
- A separate entry should be created 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.