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How to enter North Carolina PTE in ProSeries
by Intuit• Updated 3 months ago
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 an individual return:
- Open the North Carolina return.
- Open the NC K-1 for the Partnership or S Corp that had the Pass Through Entity Tax.
- Complete lines 1-11.
- 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.
- If the amount was listed as Taxed Pass Thru Entity Income on the K-1 received, select the QuickZoom on line 3.
- 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.
To generate PTE for a partnership:
- Open the North Carolina Partnership Information Worksheet.
- Scroll down to Part II - Information Needed to Complete North Carolina Returns
- 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.
To generate PTE for an S corporation:
- Open the CD-104S p1.
- 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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