- Line: 27
- Step: 6
- Step Subject: Refundable Credits and Payments
- Instruction Year: 2023
Enter the total composite and PTET credits from IA Schedule CC, Part III
Composite Credit
A composite tax credit may be claimed by a nonresident member of a pass-through entity whose income tax was paid by the pass-through entity on an Iowa composite return (IA PTE-C). The amount of the credit is equal to the amount of tax paid by the pass-through entity on the nonresident member’s behalf, as reported on the nonresident member’s Iowa Schedule K-1. The composite credit shall be claimed for the same tax year that the nonresident member’s Iowa-source income from the pass-through entity is required to be reported on the Iowa income tax return. The composite tax credit must be reported on the IA Schedule CC and that schedule must be included with the return. Any tax credit in excess of tax liability is refundable.
Iowa Code section 422.16B
Pass-Through Entity Tax (PTET) Credit
An owner of a pass-through entity that has elected to pay tax at the entity level may claim a PTET credit. The amount of the credit is reported on the owner’s Iowa Schedule K-1. The PTET credit shall be claimed for the same tax year that the owner’s income from the pass-through entity is required to be reported on the Iowa income tax return. The PTET credit must be reported on the IA Schedule CC and that schedule must be included with the return. Any tax credit in excess of tax liability is refundable.
Iowa Code section 422.16C