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How to enter Louisiana PTE in ProConnect Tax

SOLVEDby IntuitUpdated April 05, 2023

This article will help you generate the Louisiana elective pass-through entity tax in ProConnect Tax, print an election form to email to the state, and enter income excluded by the election in an individual (1040) return.

Partnership

  1. On the Profile tab make sure Louisiana PTE is checked for e-filing.
  2. Go to the Input Return tab.
  3. On the left-side menu, select State & Local.
  4. Click on Miscellaneous Information.
  5. Select the LA Miscellaneous Information screen.
  6. Scroll down to the Electing Pass-Through Entity Tax section.
  7. Check the box for Electing PTE.
    • This will switch the main return from form IT-565 to CIFT-620, and calculate the R-6981 and R-6982.
  8. If needed, check the box for Print PTE election Form R-6980.
    • The completed election form must be submitted by email to Section732.2election@la.gov, and isn't transmitted when you e-file the return. We'll generate a critical diagnostic to remind you.

S corporation

  1. On the left-side menu, select State & Local.
  2. Click on Miscellaneous.
  3. Select the LA Miscellaneous screen.
  4. Scroll down to the Electing Pass-Through Entity Tax section.
  5. Check the box for Electing PTE.
    • This will trigger the R-6981 and R-6982.
  6. If needed, check the box for Print PTE election Form R-6980.
    • The completed election form must be submitted by email to Section732.2election@la.gov, and isn't transmitted when you e-file the return. We'll generate a critical diagnostic to remind you.

Print and attach PDF forms for e-file

ProConnect Tax will generate suggestions reminding you which forms need to be attached to your filing. To print the required forms to PDF:

  1. Go to the File Return tab and select Partial print to PDF.
  2. Use partial print to create and save a separate PDF of each form that's required to be attached:
    • US Sch K-1
    • LA R-6981
    • LA R-6982
    • LA Corp Tax Inc - this worksheet serves as a pro forma Form 1120.
  3. Go to the Input Return tab.
  4. On the left-side menu, select Electronic Filing.
  5. Click the e-file Attachment hyperlink at the top right.
  6. Press Attach PDF and select the file you want to attach.
  7. Set Send PDF attachment with federal return to No.
  8. Enter a 1 in 1=send PDF attachment with LA return.
  9. In the Form line or instruction reference dropdown, select PTE.
  10. Choose the form you're attaching:
    • ProForma Form 1120.
    • Sch K-1,
    • Form R-6981, or
    • Form R-6982
  11. Press the + plus button at the top of the screen to add another attachment.
  12. Repeat steps 6-10 for the remaining forms.

Individual

Individuals who receive an R-6981 from a partnership or S-corp will need to exclude K-1 income from their Louisiana return that was included in federal AGI.

To enter the excluded income:

  1. On the left-side menu, select State & Local.
  2. Click on Modifications.
  3. Select the LA Modifications screen.
  4. Enter the amount of excluded income in Pass-through entity exclusion.

The program will generate an exemption on the IT-540-2D, Schedule E, with code 24E.

We don't recommend using the State, if different or State source amount columns of the K-1 input if the reason for the difference is this exclusion, since the program won't know the correct exemption code to use from that screen.

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