How to enter Arkansas PTE in ProConnect Tax

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

To claim the credit on an Individual return:

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.

To generate the PTE for a Partnership:

Starting in tax year 2024:

1. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ AR 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. 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.

To generate the PTE for an S-Corporation:

Starting in tax year 2024:

1. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ AR 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. 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.