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How to enter Illinois PTE tax in ProConnect Tax

by ProConnect Tax Online Updated 1 week ago

This article will help you report the Illinois 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 Income.
  2. Click on Passthrough K-1's.
  3. Select the Partnership Info or S-Corp Info screen.
  4. Click on the State & Local section along the top of the input.
  5. In the State Adjustments and Credits grid, enter the following:
    • Screen the credit applies to;
    • Input code IL308;
    • and the Amount shown on the K-1-P.
  6. You must also complete the Illinois Schedule K-1-P {IL} sections of this screen if not done already.

All sections of the input marked with {IL} are used to recreate an electronic copy of the state K-1 you received. They don't impact the tax return.

The credit will flow to form IL-1040, Step 8.

To generate the PTE for a partnership:

  1. On the left-side menu, select State & Local.
  2. Click on Miscellaneous Information.
  3. Select the IL Miscellaneous Information screen.
  4. Scroll down to the Pass-through Entity Tax (PTE) section.
  5. Check the box for Electing to file and pay Pass-through Entity Tax.

The program will calculate the PTE Income Worksheet and print the result on form IL-1065, step 8, line 60. The credit for each partner will also flow to Schedule B, page 2, and be reported on their respective Sch K-1-P.

To generate the PTE for an S corporation:

  1. On the left-side menu, select State & Local.
  2. Click on Income & Deductions.
  3. Select the IL Adjustments-Part 1A screen.
  4. Scroll down to the Pass-through Entity Tax (PTE) section.
  5. Check the box for Electing to file and pay Pass-through Entity Tax.

The program will calculate the PTE Income Worksheet and print the result on form IL-1120, step 8, line 60. The credit for each partner will also flow to Schedule B, page 2, and be reported on their respective Sch K-1-P.

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