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Creytix Tax is decision support for you and a licensed professional. It is not a CPA, enrolled agent, attorney, or tax-return preparer. Outputs are not legal, tax, or accounting advice. Do not file, elect, form, or pay from these pages without professional review.

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Pass-through entity tax (PTET) is a state election

Many states let a partnership or S-corp pay state income tax at the entity. IRS Notice 2020-75 is why that can matter federally. It is not a guaranteed refund.

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After the federal cap on individual state-and-local tax deductions, several states created an elective entity-level income tax on pass-throughs. Owners often receive a state credit for their share.

IRS Notice 2020-75 describes specified income tax payments paid by a partnership or S corporation as deductible in computing non-separately stated income or loss — that is the federal hook. The election, rate, deadline, and owner credit are **state** law.

Creytix Tax will not tell you that you save a dollar amount from PTET. Secondary blogs disagree on 2026 individual SALT-cap figures; those dollars do not belong in this product until they are locked from IRS or IRC text.

Whether the election helps depends on owner MAGI, the state's credit mechanics, estimated-payment timing, and whether you even have a qualifying pass-through. That model is CPA work.

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