PTE-C: Nonresident Composite Payment Return (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Form PTE-C is the 2025 Nonresident Composite Payment Return for reporting Alabama taxable income and paying tax on behalf of all or some nonresident owners or shareholders of a Subchapter K entity or S corporation. It reports each included owner's or shareholder's income
Who files this form
Subchapter K entities and S corporations use Form PTE-C to report Alabama taxable income for all or some of their nonresident owners or shareholders. The entity makes payment on their behalf instead of individual reporting for that income.
The form also includes Schedule NRC-EXEMPT for nonresident members to certify an exemption from the composite payment requirement.
What you'll need
Have the following information and applicable schedules ready:
- Entity details: Name, address, federal employer identification number (FEIN), federal business code, tax year, total number of owners or shareholders, and number included in the composite filing.
- Owner or shareholder details for Schedule PTE-CK1: Names, addresses, Social Security numbers or FEINs, entity types, ownership percentages, income, and applicable investment credits.
- Payment and credit information: Any 2024 overpayment, estimated payments, extension payments, WNR-V payments, and current-year composite payments or Electing Pass-Through Entity credits from Schedule CP-B, line 3.
- Partnership or LLC information: General partner details, other states where the entity operates, foreign business activity, investments in other pass-through entities, and a contact person.
- Schedule PTE-AJA, if applicable: Complete and attach it for each nonresident member who elects to include their Alabama Investment Credit in the composite return, 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. A pre-approved tiered structure exemption also requires a copy of the prior written approval each year.
- Form PTE-V: Include it with payment. It is available at www.revenue.alabama.gov.
How to file
Complete the return and applicable schedules. Sign and date the return, and provide 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 entity’s FEIN on the payment for verification. Include Form PTE-V with payment.
Common mistakes
- Including losses: The form specifically cautions not to include losses.
- Mailing PTE-C with another return: It must be mailed separately from Form 65 or Form 20S.
- Attaching the original Qualified Investment Partnership certification: Do not attach the original QIP certification to 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.
- Leaving payment identification incomplete: Write Form PTE-C, the tax year, and FEIN on the payment, and include Form PTE-V.
Questions people ask
How is each owner’s or shareholder’s tax calculated on Schedule PTE-CK1?
Column E combines nonseparately stated income, separately stated income, and guaranteed payments. Column F multiplies column E by 5%. Column H subtracts the allocated investment credit in column G from column F.
What can I do with an overpayment?
The 2025 return has fields to apply an overpayment to the 2026 return on line 7a or request a refund on line 7b.
Can unused Alabama Jobs Act Investment Credits be carried forward?
Yes. Schedule PTE-AJA states that unused credits may be carried forward for a maximum of 5 years.
Does an exemption affidavit need to be attached every year?
Yes. Schedule NRC-EXEMPT says a copy should be attached to the entity’s composite and income tax returns each year. The REIT election is required only once, but copies of the original affidavit should be attached to future years’ returns.