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How to enter Alabama PTE tax in ProConnect Tax

by ProConnect Tax Online Updated 7 months ago

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

To claim the credit on an individual return:

  1. On the left-side menu, select State & Local.
  2. Click on Other.
  3. Select the AL Other screen.
  4. Scroll down to the Alabama Payments section.
  5. Click inside the Composite payments and electing PTE credits field to complete the required entries.

The credit will print on Schedule CP, and flow to the appropriate payments line of form 40 or 40NR.

To generate the PTE for a partnership:

  1. On the left-side menu, select State & Local.
  2. Click on Miscellaneous Information.
  3. Select the AL Miscellaneous Information screen.
  4. Scroll down to the Electing Pass-Through Entity Tax section.
  5. Check the box for Electing EPT.
  6. Complete additional fields as needed.

This will generate the Alabama EPT Filing. Each partner's credit will flow to their Alabama K-1, box Z.

To generate the PTE for an S corporation:

  1. On the left-side menu, select State & Local.
  2. Click on Miscellaneous.
  3. Select the AL Misc., Amended Return screen.
  4. Scroll down to the Electing Pass-Through Entity Tax section.
  5. Check the box for Electing EPT.
  6. Complete additional fields as needed.

This will generate the Alabama EPT Filing. Each partner's credit will flow to their Alabama K-1, box Z.

ProConnect Tax

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