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How to enter North Carolina PTE in ProSeries

SOLVEDby Intuit1Updated March 16, 2023

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

Table of contents:

To claim the credit on the 1040 return:
To generate PTE on a 1065:
To generate PTE on a 1120S:

To claim the credit on an individual return:

  1. Open the North Carolina return.
  2. Open the NC K-1 for the Partnership or S Corp that had the Pass Through Entity Tax.
  3. Complete lines 1-11.
  4. If the amount was listed as Taxed Pass Thru Entity Loss on the K-1 received, select the QuickZoom on line 2.
    • Under Additions to Federal Adjusted Gross Income enter the amount on line 14: Taxed Pass-Through Entity Loss (New for 2022) under Column A and B.
  5. If the amount was listed as Taxed Pass Thru Entity Income on the K-1 received, select the QuickZoom on line 3.
    1. Under Deductions to Federal Adjusted Gross Income enter the amount on line 38: Taxed Pass-Through Entity Income (New for 2022) under Column A and B.

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To generate PTE for a partnership:

  1. Open the North Carolina Partnership Information Worksheet.
  2. Scroll down to Part II - Information Needed to Complete North Carolina Returns
  3. Check the box for Partnership is making the election to be Taxed Partnership for tax year 2022.
    • This marks "Is the partnership making the election to be a Taxed partnership for tax year 2022?" on page 1 of D-403 and calculates tax on page 3.
    • For nonresident partners, the amount flows to the Nonresident's Share of Net Tax Paid by the Manage of the Partnership on their Sch NC K-1.

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To generate PTE for an S corporation:

  1. Open the CD-104S p1.
  2. Check the box for Is the S Corporation is making the election to be Taxed S Corporation for tax year 2022 above the Schedule A.
    • This marks "Is the S corporation making the election to be a Taxed S corporation for tax year 2022?" on page 1 of D-401S and calculates tax on page 3.
    • For nonresident shareholders, the amount flows to the Nonresident's Share of Net Tax Paid by the Manage of the S Corporation on their Sch NC K-1.
    • CD-429 PTE is generated.

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