As previously discussed in this post, the Passthrough Entity Tax (PTET) is something you’ll want to pay close attention to. Introduced as a way to work around the 2017 Tax Cuts and Jobs Act (TCJA) federal cap on State and Local Tax (SALT) deductions, the PTET allows passthrough entities—such as partnerships and S-Corps—to make tax payments at the entity level, which creates a tax benefit on the owners personal tax return(s).
This can result in significant tax savings for South Carolina-based businesses. However, navigating the process of making these payments can seem confusing. That’s why we’ve created an interactive step-by-step guide on how to make PTET payments through South Carolina’s MYDORWAY portal—making this process simple, clear, and quick.
Step-by-step instructions on how to make a South Carolina Passthrough Entity Tax (PTET) payment
Why This Matters
Passthrough Entity Tax payments can offer valuable relief for business owners. When combined with proactive tax planning, a business owner can significantly mitigate their tax liability.
By leveraging these opportunities, you can keep more of your hard-earned money and stay compliant with evolving state tax laws.
When should I make the payment?
While the tax payments can be made with the filing of the return, usually around March 15th, the payments will need to be made by December 31st to be deductible in that year. Payments made after year end will be deductible in the following year for cash-basis taxpayers.
Need More Help?
Taxes are complicated, but they don’t have to be overwhelming. If you need assistance navigating South Carolina’s PTET or other tax obligations, we’re here to help.
