Idaho Idaho Schedule For Pass-Through Owners with Instructions

Idaho Schedule For Pass-Through Owners with Instructions
Form PTE-12, Schedule for Pass-through Owners and Instructions 2023
Form PTE-12
Schedule of Pass-through Owners

2023

(Required with Forms 41S, 65, or 66)
Pass-through entity (PTE) name

PTE EIN

PTE tax year beginning

Contact name

Contact phone number

Contact email address

(a)
Owner’s Name
(one owner per line)

EIN or
Social Security
Number

Filing
Code

Owner’s Address
City, State, and ZIP Code

Total Columns (b), (c), (d), and (e) 
If you have more than one schedule, enter the total amounts on the last page only.
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of

(b)
Idaho
Distributable
Income

(c)
Composite
Income
Tax Paid by
Entity

PTE tax year ending

(d)
Income Tax
Withheld by
Entity

(e)
ABE
Tax Paid
by Entity

Form PTE-12 — Instructions
Schedule of Pass-through Owners
General Instructions
Form PTE-12 is the reconciliation schedule you
include with the entity’s Idaho income tax return
(Form 41S, Form 65, or Form 66) as required
by Idaho Code section 63-3036B. Include
each owner’s complete information whether
the owner has Idaho distributable income or a
loss. If you’re filing Form 66, refer to the Form
66 Specific Instructions for information on
completing Form PTE-12.
A pass-through entity includes a partnership, a
limited liability company taxed as a partnership,
an S corporation, or a trust or estate. Income,
loss, deductions, and credits typically flow
through and the owner pays the tax. The entity
can choose to pay the tax for Idaho nonresident
individual owners on the entity’s composite
return.
The definition of “individual” includes:
•	 Natural persons
•	 Grantor trusts
•	 Qualified subchapter S trusts, and
•	 Single-member LLCs that haven’t elected
to be classified as a corporation and are
treated as disregarded entities for federal
purposes
A pass-through entity transacting business in
Idaho with income taxable in Idaho has reporting
requirements for each pass-through owner type.
Resident and part-year resident individuals
Only complete columns (a) and (b).
•	 These owners must report the income
from the entity on their Idaho individual
income tax returns. They can’t be included
in a composite return and aren’t subject to
withholding.
•	 The entity includes resident and part-year
resident individual owner information on the
PTE-12. Enter “R” in the Filing Code column.
Corporations, partnerships, trusts, and
estates
Only complete columns (a) and (b).
•	 These owners must report the income on
their Idaho return.

2023

Nonresident individual owners with Idaho
distributable income of less than $1,000
Only complete columns (a) and (b).
•	 These owners must report the income from the
entity on their Idaho income tax returns if they
have other Idaho reporting requirements. They
aren’t included in a composite return and aren’t
subject to withholding.
•	 The entity includes the owner(s) information
on the PTE-12. Enter “N” in the Filing Code
column.
Nonresident individual owners with Idaho
distributable income of at least $1,000
An entity has three options:
Composite return
Only complete columns (a), (b), and (c).
•	 The entity pays the tax for the nonresident
individual owner(s) on the entity’s return at the
corporate tax rate (5.8%).
•	 The entity includes the nonresident
individual owner’s information on the PTE12. Enter “C” in the Filing Code column.
Pass-through entity withholding on Form PTE-01
Only complete columns (a), (b), and (d).
•	 The entity pays Idaho income tax withholding
computed at the highest individual rate
(5.8%) on the nonresident individual owner’s
Idaho-source distributable income from the
entity.
•	 The entity submits withholding to the Tax
Commission using Form PTE-01 for each
nonresident individual owner.
•	 The entity includes the nonresident individual
owner’s information on the PTE-12. Enter “W”
in the Filing Code column.
Form PTE-NROA (Nonresident Owner
Agreement)
Only complete columns (a) and (b).
•	 The nonresident individual owner can submit a
signed agreement (PTE-NROA) to the entity.
•	 This allows the nonresident individual owner to
file an Idaho return to report the Idaho-source
distributable income from the entity and pay
the required tax due.

•	 Include the owner information on the
PTE-12. Enter “N” in the Filing Code column.
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Form PTE-12 — Instructions

•	 If the entity receives the signed agreement
from the nonresident individual owner and
approves it, the entity doesn’t include the
individual in a composite return or pay
withholding to the Tax Commission on the
owner’s behalf.
•	 The entity includes the nonresident
individual owner’s information on the
PTE-12. Enter “A” in the Filing Code column.
Affected business entities
Only complete columns (a), (b), and (e).
The entity has elected to be taxed at the entity
level. Enter “E” in the Filing Code column.

Specific Instructions
Heading
Enter the entity’s name and Employer
Identification Number (EIN) in the space
provided.

2023 (continued)

By entering the “A” filing code, the entity agrees
that it received and approved the agreement
from the individual* and acknowledges that the
entity is liable for any tax due if the individual
doesn’t file a return and pay the tax as agreed.
Composite (C)
The nonresident individual owner is included
in a composite return. If the owner isn’t an
individual,* the income can’t be included on a
composite return, and code “C” can’t be used.
Affected Business Entity (E)
The entity has elected to pay tax at the entity
level.
If the entity uses filing code “E,” it must apply to
all owners.

Entity’s tax year beginning and ending
Enter the beginning and ending date of the
entity’s tax year.

Not Required (N)
The owner isn’t subject to backup withholding.
Backup withholding isn’t required on income of
less than $1,000. Don’t withhold on the income
of owners and beneficiaries if they aren’t natural
persons* (including corporations, partnerships,
trusts, and estates).

Contact name and phone number
Enter the name, phone number, and email
address of a person we can contact about the
information reported on Form PTE-12.

Resident (R)
The owner is an Idaho resident or part-year
resident filing an Idaho individual income tax
return.

Owner’s name and Social Security number or
EIN
Enter the name and corresponding Social
Security number or EIN of each owner as shown
on the Idaho income tax return, one owner per
line.
Address
Enter the owner’s address, city, state, and ZIP
code.
Column (a) Filing Code
Enter one of the following letters corresponding
to the filing code for the owner.
Agreement (A)
The nonresident individual owner has provided
an Idaho nonresident owner agreement
(Form PTE-NROA).

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Withholding (W)
The entity is paying backup withholding on
behalf of a nonresident individual owner on
Form PTE-01.
Withholding can’t be paid on behalf of another
entity, and code “W” can’t be used.
*See General Instructions for definition of
“individual.”
Column (b) Idaho Distributable Income
Enter the Idaho distributable income for all filing
codes.
This is the amount computed on Form ID K-1,
line 34. If the entity is a partnership, guaranteed
payments sourced to Idaho are included in the
Idaho distributable income of the partner. (See
Guaranteed Payments Guidance at tax.idaho.gov).

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Form PTE-12 — Instructions

2023 (continued)

If the beneficiary is an Idaho nonresident, only enter
the nonresident beneficiary’s share of the distributed
Idaho-source income. Some sources of income
may not be Idaho-source income to a nonresident
beneficiary.

Column (e) ABE Tax Paid by Entity
If you enter filing code “E” in column (a), enter in this
column:

Column (c) Composite Income Tax Paid by
Entity
If you enter filing code “C” in column (a), enter
in this column the tax paid on behalf of the
nonresident individual owner by the entity on the
composite return. The total for this column should
equal either:

For a partnership, multiply the entity’s ABE tax
paid by the member’s distributive share of income
(including guaranteed payments).

•	 Form 41S, line 56 minus lines 51, 53 and 54
or
•	 Form 65, line 53 minus lines 48, 50 and 51

For an S corporation, multiply the entity’s ABE tax
paid by the member’s ownership percentage.

If the member is an exempt entity, enter zero in
this column. The total for this column should equal
either:
•	 Form 41S, line 56 minus lines 51, 53 and 54
or
•	 Form 65, line 53 minus lines 48, 50 and 51

Column (d) Income Tax Withheld by Entity
If you enter filing code “W” in column (a), enter
in this column the tax withheld on behalf of the
nonresident individual owner. The total amount
reported should match the total amount paid on
the PTE-01s.
Don’t send payments or PTE-01s with the entity
return.

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
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