How to enter Arkansas PTE in Lacerte

This article will help you report the elective pass-through entity tax (sometimes called PTE, PTET, PET, or SALT workaround) and the resulting credit.

For more PTE resources, check out our dedicated Tax topics page where you'll find a list of all PTE states and the respective content for each.

What's new for 2024:

Due to new reporting requirements, a supplemental schedule reconciling any differences between Total and Arkansas amounts is now required.  The AR Reconciliation Schedule is now required to be filed for Partnerships and S Corporations.

Table of contents:

Individual

1. Go to Screen 20, Passthrough K-1's.
2. Under Share of Current Year Income (Loss) section enter the amount on the PTE Adjustment {AR} line. Positive amounts flow to the state as a Addition to income, negative amounts flow to the state as a Subtraction to income.
3. This will flow to the Form AR-OI as an adjustment.
   • Income amounts show on line 14 as a Subtraction from income.
   • Loss amounts flow to line 7 as an addition to income.

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Partnership

Starting in tax year 2024:

1. Go to Screen 37.351 Arkansas Miscellaneous Information.
2. Scroll down to the Electing Pass-Through Entity Tax section.
3. Check the Electing PET box to activate the calculations.
4. Add a 1 to the AR362 Pass-Through Entity Election Form line.
5. Complete any other applicable fields in the Electing Pass-Through Entity Tax section.
6. If there are carryovers from the prior year complete the Electing Pass-Through Entity NOL Carryovers section and review the Electing Pass-Through Entity NOL Carryforward Adjustment (Add Back of Non-taxable income) section.
7. Review the AR1100PET to review the calculations.
8. Review the new AR100REC Reconciliation Schedule.

For tax year 2023 and prior:

1. Go to Screen 37.351 Arkansas Miscellaneous Information.
2. Check the Electing PET box to activate the calculations.
3. Add a 1 to the AR362 Pass-Through Entity Election Form line.
4. Make any additional adjustments as needed to screen 37.351
5. Review the AR1100PET to review the calculations.

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S-Corporation

Starting in tax year 2024:

1. Go to Screen 32.351 Arkansas Miscellaneous Information.
2. Scroll down to the Electing Pass-Through Entity Tax section.
3. Check the Electing PET box to activate the calculations.
4. Add a 1 to the AR362 Pass-Through Entity Election Form line.
5. Complete any other applicable fields in the Electing Pass-Through Entity Tax section.
6. If there are carryovers from the prior year complete the Electing Pass-Through Entity NOL Carryovers section and review the Electing Pass-Through Entity NOL Carryforward Adjustment (Add Back of Non-taxable income) section.
7. Review the AR1100PET to review the calculations.
8. Review the new AR100REC Reconciliation Schedule.

For tax year 2023 and prior:

1. Go to Screen 42.351 Arkansas Miscellaneous Information.
2. Check the Electing PET box to activate the calculations.
3. Add a 1 to the AR362 Pass-Through Entity Election Form line.
4. Make any additional adjustments as needed to screen 42.351
5. Review the AR1100PET to review the calculations.

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