Pass-through Entity Tax Deduction

Tina N. Barrett

No 413261, Cornhusker Economics from University of Nebraska-Lincoln, Department of Agricultural Economics

Abstract: In 2023, the State of Nebraska became the 36th state to implement a Pass-Through Entity Tax (PTET) Deduction law. This law is in response to a change made by the federal Tax Cuts and Jobs Act of 2018 which limited the state and local tax deduction eligible for itemized deductions to $10,000. This new state law allows partnerships and s-corporations to pay the state income tax on behalf of their owners which qualifies it for a federal tax law deduction. The individuals will then receive a credit on their individual return for the tax paid on their behalf.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nbaece:413261

DOI: 10.22004/ag.econ.413261

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