How to enter Arkansas PTE in ProSeries

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

Table of contents:

To claim the credit on an individual return:

1. Open the Arkansas state return.
2. Press F6 to bring up Open Forms.
3. Type INC and click OK to open the Income Allocation Worksheet.
4. Use line 16x to enter the Pass-Through Income or loss related to entity tax paid.
5. 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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To generate the PTE for a partnership:

Starting in tax year 2024:

1. Open the Arkansas Partnership Information Worksheet.
2. Scroll down to Part II - Tax Year Information and Filing Instructions.
3. Check the Annual Voluntary election - Pass-Through entity has elected to pay tax at the entity level pursuant to Chapter 65 of the Arkansas Code box.
4. Review the AR1100PET.
5. Review the new AR100REC Reconciliation Schedule.

For tax year 2023 and prior:

1. Open the Arkansas Partnership Information Worksheet.
2. Scroll down to Part II - Tax Year Information and Filing Instructions.
3. Check the Annual Voluntary election - Pass-Through entity has elected to pay tax at the entity level pursuant to Chapter 65 of the Arkansas Code box.
4. Review the AR1100PET.

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To generate PTE for an S corporation:

Starting in tax year 2024:

1. Open the Arkansas S Corporation Information Worksheet.
2. Scroll down to Part II - Tax Year Information and Filing Instructions.
3. Check the Annual Voluntary election - Pass-Through entity has elected to pay tax at the entity level pursuant to Chapter 65 of the Arkansas Code box.
4. Review the AR1100PET.
5. Review the new AR100REC Reconciliation Schedule.

For tax year 2023 and prior:

1. Open the Arkansas S Corporation Information Worksheet.
2. Scroll down to Part II - Tax Year Information and Filing Instructions.
3. Check the Annual Voluntary election - Pass-Through entity has elected to pay tax at the entity level pursuant to Chapter 65 of the Arkansas Code box.
4. Review the AR1100PET.

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