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How to enter Utah PTE in ProSeries

SOLVEDby IntuitUpdated March 16, 2023

This article will help you report the Utah 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:

If an entity filing as a partnership or S-corporation generates voluntary taxable income, that entity may elect to pay an advance Utah income tax payment on voluntary taxable income on behalf of each individual partner, member, or shareholder who would otherwise be entitled to a distribution of that income. This election can only be made on behalf of individual partners, members, or shareholders, and if the election is made, it applies to all of the entity’s individual partners, members, or shareholders.  The election cannot be made on behalf of partners, members, or shareholders, who are an entity, estate, or trust.

On the individual tax return level, you may claim a credit equal to the amount of tax paid on your behalf by a pass-through entity to Utah under §59-10-1043.2(2), as shown on your K-1 from the pass-through entity.

To claim the credit on an individual return:

  1. Open the Utah return.
  2. Press F6 to bring up Open Forms.
  3. Type A and press OK to bring up Form TC-40A.
  4. Scroll down to Part 4 - Nonapportionable Nonrefundable Credits.
  5. Select Pass-through entity tax credit from the drop down menu and enter the amount of the credit.

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To generate PTE for a partnership:

ProSeries will automatically generate the Schedule N for the partners unless a waiver is requested.

To indicate the waiver is requested:

  1. Open the Utah Partnership Return.
  2. Open the Sch K-1 Wks.
  3. For each partner that requests a waiver, select the Schedule N Withholding Waiver checkbox. This will remove that partners taxable amount from the Schedule N.

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To generate PTE for an S corporation:

ProSeries will automatically generate the Schedule N for the shareholders unless a waiver is requested.

To indicate the waiver is requested:

  1. Open the Utah S Corporation Return.
  2. Open the Sch K-1 Wks.
  3. For each shareholder that requests a waiver, select the Schedule N Withholding Waiver checkbox. This will remove that shareholders taxable amount from the Schedule N.

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