1. Go to State & Local > Miscellaneous > AZ Miscellaneous;

2. Scroll down to the Arizona PTE taxes section; and

3. Check that the box for Electing PTE taxes is checked.

The default for shareholders is not to opt out.  If any shareholder is to opt out, you'd check the box for Shareholder is opting out of the PTE election (if made) under the Arizona PTE taxes section under State & Local > Schedule K-1 > AZ Schedule K-1 Overrides.

The entries and computations on 120S will be updated automatically based on the above.