How to enter Arkansas PTE in Lacerte

Down below we'll go over how to report the Arkansas elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in Lacerte.

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

To activate the PTE calculation:

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

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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