Strategy #24 · PTET Client Workpaper

Client & Entity Information

Entity Name:

Entity Type:

State:

Tax Year:

EIN:

Number of Owners:

💰 How PTET Saves You Money: Your business pays state income tax at the entity level (fully deductible for federal taxes), and you receive a dollar-for-dollar credit on your personal state return. Net result: lower federal tax with no change in state tax = real savings.

Eligibility Checklist

Eligibility Criteria	✓	Notes
Entity is S-Corp, Partnership, or LLC
State offers PTET election
Owners are subject to state income tax
All required owners consent to election
Owner MAGI analysis completed ($500K/$600K thresholds)

PTET Calculation

Line Item	Amount
1. Entity Ordinary Business Income (Federal)
2. State Addbacks/Modifications
3. State Subtractions/Deductions
4. State Taxable Income (Line 1 + Line 2 - Line 3)
5. State PTET Rate	%
6. Total PTET Liability (Line 4 × Line 5)

Owner Allocation

Owner Name	Own %	State Income	PTET Paid	State Credit
	%
	%
	%
TOTAL	%

Federal Tax Savings Analysis

Tax Impact	Amount
Entity-Level PTET Paid
Federal Tax Rate (Average for Owners)	%
Federal Tax Savings (PTET × Fed Rate)
State Tax Credits to Owners
Net Annual Tax Benefit

Quarterly Payment Tracking

Quarter	Due Date	Amount	Date Paid	Confirmation #
Q1 Estimated
Q2 Estimated
Q3 Estimated
Q4 Estimated
Final w/ Return
TOTAL PTET PAYMENTS

Key State PTET Deadlines

⚠️ Important: Deadlines vary by state. States highlighted in yellow have early or irrevocable elections - verify requirements before proceeding.

State	Election Deadline	Rate	Key Notes
Maryland	With 1st estimate (April 15)	5.75%	IRREVOCABLE once made
New York	March 15 OF tax year	6.85%	Online election required; NYC adds ~4%
Georgia	March 15 OF tax year	5.39%	Election due BEFORE year begins
California	March 15 following year	9.3-13.3%	June 15 payment required
Illinois	Automatic	4.95%	Automatic unless opt-out
New Jersey	March 15 following year	10.9%	No retroactive elections
Ohio	Automatic	3.0%	Automatic unless opt-out
Other States	With timely filed return	Varies	Most allow election on return

Advisor Notes & Recommendations

PTET Election Analysis & Rationale:

Client Communication Notes:

Next Year Planning:

This workpaper documents PTET election analysis per The Eiduk Pathway™ Strategy #26. State PTET rules change frequently—always verify current requirements. SALT cap is $40,000 for 2025-2029 (phases out $500K-$600K MAGI), reverting to $10,000 in 2030.

Eiduk Tax & Wealth