Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Help articles

Enter withholding requirements for pass-through entities

An estate or trust transacting business in Idaho needs to withhold income tax on a nonresident individual beneficiary's distributable Idaho source income and other Idaho source compensation paid to the nonresident by the estate or trust, unless the nonresident beneficiary elects to have the estate or trust pay the beneficiary's Idaho income tax on the Idaho Form 66.
The nonresident beneficiary makes the election on Form PTE-NROA and gives this form to the estate or trust. A nonresident beneficiary who has Idaho taxable income from a source other than another pass-through entity can't make this election.
The income tax withheld by the estate or trust must be paid to the Tax Commission using Form PTE-01, which is due by April 15. Form PTE-12 is the reconciliation schedule to include with the PTE's Idaho income tax return as required by Idaho Code Section 63-3036B. The PTE-12 requires each owner's complete information.
Enter one of the following letters on Form PTE-12, column (a) that corresponds to the filing option for the owner:
  • (Code A)
     If the owner has given an Idaho nonresident owner agreement, select
    View
    , then
    Beneficiary Information
    . In the
    Idaho
     tab, select code
    3
     from the
    Tax/Withholding options
     field. By entering filing code A, the PTE agrees that they’ve received and approved the nonresident owner agreement from the individual and acknowledge that the PTE is liable for any tax due if the individual fails to file a return and pay the tax as agreed.
  • (Code C)
     If a composite return includes the individual owner, select
    View
    , then
    Beneficiary Information
    . In the
    Idaho
     tab, select code
    2
     from the
    Tax/Withholding options
     field. If the owner is another entity, you can't include the income on a composite return.
  • (Code N)
    Withholding is not required on income of less than $1,000 or income of owners and beneficiaries that are not natural persons (that is, corporations, partnerships, trusts, and estates). UltraTax CS automatically selects this code based on income and the
    Entity
     entered in
    View
    ,
    Beneficiary Information
    , then the
    Beneficiary
     tab.
  • (Code R)
     If the owner is an Idaho resident or part-year resident filing an individual Idaho return, withholding is not needed. UltraTax CS automatically selects this code based on the residency status as entered in
    View
    , then
    Beneficiary information
    .
  • (Code W)
     If the PTE is paying withholding on behalf of a nonresident individual on Form PTE-01. Withholding can't be paid on behalf of another entity. UltraTax CS defaults to code W when no other codes apply. To force a different amount, select
    View
    ,
    Beneficiary
    , then
    Information
    . In the
    Idaho
     tab, enter the amount in the
    Withholding (force)
     field.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close