How to enter Michigan PTE in ProConnect Tax

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 Input Return ⮕ State & Local ⮕ Other Credits ⮕ MI 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 Input Return ⮕ State & Local ⮕ Other Credits ⮕ MI Credits.
2. Under the Michigan Nonrefundable Credits section, enter the amount in the Electing flow-through entity credit field.
   • This amount flows 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 each partner: Go to Input Return ⮕
3. On the respective partner tab, 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 each shareholder: Go to Input Return ⮕ State & Local ⮕ Other Forms ⮕ MI Schedule of Shareholders.
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.