How to enter Alabama PTE tax 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 an individual return:

1. Go to Input Return ⮕ State & Local ⮕ Other.
2. Select AL Other.
3. Scroll down to the Alabama Payments section.
4. Select 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.

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To generate the PTE for a partnership:

1. Go to Input Return ⮕ State & Local ⮕ Miscellaneous Information.
2. Select AL Miscellaneous Information.
3. Scroll down to the Electing Pass-Through Entity Tax section.
4. Check the box for Electing EPT.
5. Input amount in the 2024 Estimated tax payments field.
6. Input amount in the Extention and WNR-V Tax Payments field.
7. Find the subsection Form PTE-E Pass-Through Entity Election Form
   • Enter a 1 if you're making an election
   • Enter a 2 if you're revoking election
8. 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.

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To generate the PTE for an S corporation:

1. Go to Input Return ⮕ State & Local ⮕ Miscellaneous.
2. Select AL Misc., Amended Return.
3. Scroll down to the Electing Pass-Through Entity Tax section.
4. Check the box for Electing EPT.
5. Input amount in the 2024 Estimated tax payments field.
6. Input amount in the Extention and WNR-V Tax Payments field.
7. Find the subsection Form PTE-E Pass-Through Entity Election Form
   • Enter a 1 if you're making an election
   • Enter a 2 if you're revoking election
8. 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.

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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.