PTET-P: Pass-Through Entity Tax Underpayment Penalty Calculations (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form PTET-P calculates the underpayment penalty for estimated pass-through entity tax (PTET) for 2024. It compares required installments with payments and credits, then calculates the penalty to report on Form 740-PTET.
When it's due
For tax year 2024, the instructions list these PTET installment due dates based on your tax year:
- The 15th day of the 4th month of the tax year.
- The 15th day of the 6th month of the tax year.
- The 15th day of the 9th month of the tax year.
- The 15th day of the month following the close of the tax year.
For the penalty calculation on line 14, use the date the installment is paid in full or the 15th day of the 4th month after the close of the tax year, whichever is earlier.
What you'll need
Have the following information available to complete the 2024 calculation:
- Your current-year estimated PTET and nonrefundable credits.
- Your tax year and installment due dates.
- Estimated PTET paid or credited for each period.
- The date each installment was paid in full, if applicable.
- Form 740-PTET, including any income tax due on line 15 or income tax overpayment on line 18, to determine where to enter the penalty.
Common mistakes
- Do not work across all columns for lines 7 through 13. The form reminds you to complete those lines in one column before moving to the next column.
- Do not assume the penalty rate stays the same each year. The instructions note that the tax due penalty rate equals that year's tax due interest rate. They state that the 2026 rate will be made public in early October 2025.
Questions people ask
What does Form PTET-P calculate?
It calculates PTET installment underpayments and the resulting underpayment penalty.
How much is each required installment?
Subtract nonrefundable credits on line 2 from current-year estimated PTET on line 1. Enter 25% of that result in each column of line 5.
How does the form account for an installment overpayment?
If line 10 is greater than line 5, enter the difference on line 13. Carry that amount to line 7 of the next column.
Where does the total penalty go on Form 740-PTET?
Add columns A through D of line 22 and enter the total in column D of line 23. If Form 740-PTET shows an income tax overpayment on line 18, add the penalty to line 20. If it shows income tax due on line 15, enter the penalty on line 16.