ProConnect HelpIntuit HelpIntuit

How to enter Arkansas PTE in ProConnect Tax

SOLVEDby IntuitUpdated April 19, 2023

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
Partnership
S-Corporation

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.png

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.png

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.png

Was this helpful?

You must sign in to vote, reply, or post
ProConnect Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads