17615: MA - Form 63D-ELT

The MA 63D-ELT is a new form starting with tax year 2021. A pass-through entity can elect to pay the PTE Excise tax at the partnership/scorp/fiduciary return level. The election must be made annually and cannot be changed for the reporting year once made. If this election is made, the shareholder, partner, or beneficiary is then eligible to claim a credit equal to 90% of their share of the PTE excise tax paid on their individual MA return. Form 63D-ELT is used to report and pay the 5% pass-through entity tax excise tax for an electing entity.

Due Date

Form 63D-ELT is due at the same time as the entity's main state form (Form 3, Form 355S, Form 63-FI, or Form 2). 

• S Corporation and Partnership packages - March 15, 2022
• Fiduciary package - April 19, 2022

e-Filing 

Form 63D-ELT can be filed through Drake Tax, however, it must be filed separately from any other MA returns by selecting MA 63D from the drop-down on the federal EF screen.

Payments

The Form 63D-ELT tax can be paid via direct debit by using the PMT screen; choose MA in the drop list and review the transaction summary to ensure that the payment will be withdrawn as expected. The MA Form 63-ELT must be e-filed separately from all other MA returns, so the payment selection would only apply to one MA return at a time. 

Estimates 

Estimated payments for Form 63D-ELT are not yet available.

Extensions 

A Form 63D-ELT extension can be filed, but must be transmitted with a payment. A return that has 80% of its tax liability paid is granted an automatic extension. 

Data Entry

Scorp: MA > screen 355S > scroll down and select the checkbox Entity elects the 63D-ELT Excise. A blue link beside this checkbox opens the 63D-ELT Screen where overrides and additional entries can be made. 

Partnership: MA > screen 1 > scroll down and select the checkbox Entity elects the 63D-ELT Excise. A blue link beside this checkbox opens the 63D-ELT Screen where overrides and additional entries can be made. 

Fiduciary: MA > screen 1 > select the checkbox Annual voluntary election pass through entity has elected to pay tax at the entity level pursuant to MGL Ch 63D. A blue link below this checkbox opens the 63D-ELT Screen where overrides and additional entries can be made. 

Notes: 

• Total ordinary income cannot be negative
• Total capital gain/loss cannot be negative
• Section 1, Line 12, Differences and Adjustments cannot be negative
• Any one member cannot have negative ordinary income or net capital losses for the purposes of 63D

Helpful Links

• 2021 Form 63D ELT Instructions
• Elective Pass-through Entity Excise Page
• Working Draft TIR - Pass-through Entity Excise