PTET-P: Pass-Through Entity Tax Underpayment Penalty Calculations (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Form PTET-P calculates the penalty for underpayment of estimated pass-through entity tax for 2025. It figures required installments, underpayments or overpayments for each period, and the total penalty to enter on Form 740-PTET.
Who files this form
Form PTET-P is used to calculate the penalty for underpaying estimated pass-through entity tax (PTET).
Pass-through entities that elected to pay PTET must make estimated payments if their tax liability is reasonably expected to exceed $500.
The penalty does not apply if prepaid tax equals or exceeds the prior year’s PTET liability. For the 2025 form, compare current-year estimated PTET payments with the liability from the 2024 Form 740-PTET. If those payments equal or exceed that liability, the form says to stop.
When it's due
For tax year 2025, estimated PTET installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of your tax year. Enter these dates on line 4.
For the penalty calculation on line 14, use the earlier of:
- The date the specific installment is paid in full.
- The 15th day of the 4th month after the close of the tax year.
The line 14 date is a penalty-calculation cutoff, not a separately stated filing deadline for Form PTET-P.
What you'll need
Have these forms and payment details available to complete the calculation:
- 2024 Form 740-PTET, for the prior-year tax liability comparison.
- Your 2025 estimated PTET amount.
- Records of estimated PTET paid or credited for each installment period, including when each installment was paid in full.
- Your tax-year dates, to determine installment due dates.
- 2025 Form 740-PTET, to transfer the calculated penalty to the appropriate line.
Common mistakes
- Continuing past the opening stop instruction. Stop if current-year estimated PTET payments equal or exceed the liability from the 2024 Form 740-PTET.
- Working across columns too soon. Complete lines 7 through 13 for one column before moving to the next column.
- Missing the column A instruction. For column A, copy the amount from line 6 to line 10.
- Using an assumed 2027 penalty rate. The note says the penalty rate is the same as that year’s tax due interest rate. The 2027 rate will be made public in early October 2026.
Questions people ask
How much is each required installment?
Enter 25% of line 3 in each of columns A through D on line 5. Line 3 is the total of your required estimated PTET installments.
Does the penalty apply if I paid at least last year’s PTET liability?
No. The text says the penalty does not apply if prepaid tax equals or exceeds the prior year’s PTET liability.
Where do I enter the calculated penalty on Form 740-PTET?
First, total columns A through D of line 22 and enter the result 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.
Who uses the calculation period on line 20?
The line 20 instructions apply to taxpayers with fiscal years ending September through November 2025. Count the days from line 15 that fall after December 31, 2026, and before March 16, 2027, or the day after the return’s due date, whichever is earlier.