How to enter Michigan PTE in Lacerte

This article will help you report the elective pass-through entity tax (sometimes called PTE, PTET, PET, or SALT workaround) and the resulting credit.

Table of contents:

To claim the credit on the individual

Starting in tax year 2025:

1. Go to Screen 53.146 Other Michigan Credits.
2. Complete either the Direct FTE Credits and Adjustments or the Indirect FTE Credits and Adjustments section.
3. This will generate the new form 6072 and flow to the MI-1040 line 30

For tax year 2024 and prior:

1. Go to Screen 53.146 Other Michigan Credits.
2. Enter the credit on the Electing flow-through entity credit line.
3. This will flow to the MI-1040 line 29.

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To generate the credit in the Partnership return

1. Complete and File Form 5772 through Michigan Treasury Online (MTO).
   • See here for additional FAQ's from Michigan.
2. To enter the withholding for the partners, Go to Screen 32.1 Partners Miscellaneous Info.
3. Scroll down to the Michigan Information section.
4. Enter the Withholding to be distributed for each partner.

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To generate the credit in the S-Corporation return

1. Complete and File Form 5772 through Michigan Treasury Online (MTO).
   • See here for additional FAQ's from Michigan.
2. To enter the withholding for the shareholders, Go to Screen 49.142 Michigan Sch of Shareholders & Officers
3. Enter the Withholding to be distributed for each shareholder.

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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.