Sch. PTE: Pass-Through Entity Tax Calculation (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Schedule PTE calculates a pass-through entity's elective tax using a 9.00% rate on qualified net income. It also reports qualified members, their qualified net income amounts, and their elective tax credit amounts.
What you'll need
Have Form N-20 or Form N-35 and the following information ready:
- The entity's name as shown on its tax return and federal employer identification number (FEIN).
- The total number of qualified members and their total qualified net income.
- Each qualified member's name and FEIN or Social Security number (SSN).
- Each qualified member's pro-rata or distributive share and guaranteed payments included in qualified net income.
How to file
Attach Schedule PTE to Form N-20 or Form N-35.
Enter the total elective tax from Part I, line 4, on Form N-20, line 17a, or Form N-35, line 22f.
Common mistakes
- Do not enter a negative elective tax amount. Part I, line 4, says to enter zero if the calculation is less than zero. The same rule applies to each member's elective tax credit in box b.
- Do not leave page 2 amounts out of the Part II totals. Lines 2 and 3 require combining the box a and box b amounts from both pages.
Questions people ask
What elective tax rate does Schedule PTE show?
Part I, line 3, lists a rate of 9.00%.
How is the entity's total elective tax calculated?
Multiply total qualified net income on Part I, line 2, by 9.00%. Enter the result on line 4. If the result is less than zero, enter zero.
How is each qualified member's elective tax credit calculated?
In Part II, box a, enter the sum of the member's pro-rata or distributive share and guaranteed payments included in qualified net income. Multiply box a by 9.00% and enter the result in box b. If the result is less than zero, enter zero.
What is reported in the Part II totals?
Report the number of qualified members listed on the form, their total qualified net income, and their total elective tax credit amount. Include amounts from page 2 in the income and credit totals.