How to enter Arkansas PTE in ProConnect Tax

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 ProConnect Tax.

Table of contents:

Individual

1. Go to to the Schedule K-1 screen for the related activity:
   • Income ⮕ Passthrough K-1's ⮕ Partnership Info (1065 K-1)
   • Income ⮕ Passthrough K-1's ⮕ S-Corp Info (1120S K-1)
2. Select the Lines 1-10 tab from along the top of the workspace.
3. Under the Share of Current Year Income (Loss) section, enter the amount in the PTE Adjustment {AR} field.
   • Positive amounts flow to the state as an addition to income
   • Negative amounts flow to the state as a subtraction from income.
4. 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. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ AR Miscellaneous Information.
2. Under the Arkansas Miscellaneous section, mark the Electing PET checkbox to activate the calculations.
3. To indicate that you are making the election, under the Electing Pass-Through Entity Tax section, enter a 1 in the AR362 Pass-Through Entity Election Form field.
4. Make any additional adjustments as needed on AR Miscellaneous Information.
5. Review the AR1100PET for the calculations.

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S-Corporation

1. From the Input Return tab, go to State & Local ⮕ Miscellaneous ⮕ AR Miscellaneous.
2. Under the Arkansas Miscellaneous section, mark the Electing PET checkbox to activate the calculations.
3. To indicate that you are making the election, under the Electing Pass-Through Entity Tax section, enter a 1 in the AR362 Pass-Through Entity Election Form field.
4. Make any additional adjustments as needed to screen 42.351
5. Review the AR1100PET for the calculations.

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