“The more you spend the more you save!”, we’ve all heard that adage from the retail establishment… works on my wife!
Hahaha… but seriously, it does, and sometimes it’s not funny.
Well, the SALT Tax workaround is kind of like that. The more you make (we’re talking about taxable income here), the more advantageous this program is because your savings will take place at higher tax brackets. The math is simple. (Here is where we previously dove into that)
We all know that this program hasn’t been executed perfectly, but we roll with punches – passed by the State legislature and signed into law in August 2021, the DOR got the mechanism up and running to make the payments in mid-December and then had the kinks ironed out just before the school holiday break, less than ideal timing, but saving taxes is perversely motivating so we canceled vacation and tried to get as many businesses as possible to take advantage of this.
The next step was the tax filings, we finally got the green light about mid-February.
It is an additional filing from the usual suspects. Form 63D-ELT – it’s not terrible, just a few pages, and a couple additional required statements; in addition to some more reporting on the shareholder’s or partner’s Form Sk-1. Actually, that does sound terrible.
So why are we rehashing all this? Because, now that your tax returns are getting completed and “delivered” there may be a balance due for 2021 and/ or estimated payments for the 2022 filing year, and to help everyone, and make these steps as smooth as possible we’ve (I’m using “we” very generously, it was Ashley) put together some easy-to-follow instructions on paying your PTE balance due and paying PTE estimates ~ complete with pictures.
Remember, we encouraged this extra effort (when appropriate) because we bet, that like us, you think that saving taxes and keeping your hard-earned dollars is cool!