PTE-C: Nonresident Composite Payment Return (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Form PTE-C is the Nonresident Composite Payment Return for reporting Alabama taxable income of all or some nonresident owners or shareholders of a Subchapter K entity or S corporation. It reports tax due, payments, credits, and any balance due or overpayment, and is used
Who files this form
Form PTE-C is used by a Subchapter K entity or S corporation to report Alabama taxable income for all or some of its nonresident owners or shareholders. The entity makes payment on their behalf instead of individual reporting.
The form includes Schedule NRC-EXEMPT for nonresident members who certify that they qualify for an exemption.
What you'll need
Have these details and schedules ready:
- Entity information: Name, address, federal employer identification number (FEIN), federal business code, and counts of total owners and nonresident owners included in the filing.
- Schedule PTE-CK1 information: Each nonresident owner's name, address, SSN or FEIN, entity type, ownership percentage, income, and applicable investment credit.
- Payment and credit records: Any 2023 overpayment, estimated payments, extension payments, WNR-V payments, and current-year payments or credits from Schedule CP-B, line 3.
- Partnership and LLC information: General partner details, other states of operation, and applicable foreign business and pass-through entity investment details.
- Form PTE-V: Include this with payment. It is available at www.revenue.alabama.gov.
- Schedule PTE-AJA, if applicable: Complete it for each nonresident member electing to include their Alabama Investment Credit in the composite return. Attach it each year the credit is claimed.
- Schedule NRC-EXEMPT, if applicable: Attach a copy to the entity's composite and income tax returns each year. The pre-approved tiered structure exemption also requires a copy of the prior written approval each year.
How to file
Complete the return and applicable schedules, then sign and date it. Include your title or position and daytime telephone number.
Mail Form PTE-C separately. Do not attach it to or mail it with Form 65 or Form 20S.
Mail to:
Alabama Department of Revenue – PTE-C
P.O. Box 327444
Montgomery, AL 36132-7444
Make payment payable to Alabama Department of Revenue. Write Form PTE-C, the tax year, and the FEIN on the payment, and include Form PTE-V.
Common mistakes
- Including losses: The form specifically cautions not to include losses.
- Mailing returns together: Form PTE-C must be mailed separately from Forms 65 and 20S.
- Attaching the original QIP certification: Do not attach the original Qualified Investment Partnership certification to Form PTE-C. It must be filed with the QIP's annual Form 65 return.
- Omitting additional owner pages: If there are more than 11 nonresident owners or shareholders, attach additional pages and enter their summary totals on page 3, line 13.
Questions people ask
How is each owner's tax calculated on Schedule PTE-CK1?
Column E combines nonseparately stated income, separately stated income, and guaranteed payments. Multiply column E by 5% for column F, then subtract the allocated investment credit in column G to get the tax due in column H.
Where does the total tax go on the return?
Add the column H amounts from page 3, lines 12 and 13. Enter the result on page 3, line 15, and page 1, line 1.
What can I do with an overpayment?
The 2024 form has fields for an overpayment credited to the 2025 return and an overpayment amount to be refunded.
Can unused Alabama Jobs Act Investment Credits carry forward?
Yes. Schedule PTE-AJA states that unused credits may be carried forward for a maximum of 5 years.