How to enter Rhode Island PTE tax in ProConnect Tax

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

To generate PTE in Individual business filings:

1. From the Input Return tab, go to State & Local ⮕ Taxes ⮕ RI PTE Taxes.
2. Enter a 1 for taxpayer and/or spouse column on the File RI-PTE row.
3. Complete the 1=Cash, 2=Accrual row for the taxpayer or spouse columns.
4. Review the lines for any variations that apply to this client.

To generate PTE for a Partnership:

1. From the Input Return tab, go to State & Local ⮕ Adjustments ⮕ RI Adjustments.
2. In the PTE tax elected to be paid by PTE under RIGL 44-11-2.3 field, enter the total amount of pass-through entity tax elected to be paid to be allocated to pass-through entity partners.
   • This amount will be multiplied by the ratio of pass-through entity partners and reported in the Additions section of the RI K-1.
   • Amount entered is also reported on form RI-1065 as an addition to federal taxable income. 
3. Go to State & Local ⮕ Other Forms ⮕ RI PTE Taxes.
4. Under the Rhode Island PTE Taxes section, check the File RI-PTE checkbox.
5. Complete the 1=Cash, 2=Accrual line to generate the RI-PTE.
6. Go to the Rhode Island Pass-Through Withholding section, which is also located under Other Forms.
7. Review the lines for any variations that apply to this client.
8. Review the calculations on the RI-PTE and the RI-1099E for each partner.

To generate PTE for an S-Corporation:

1. From the Input Return tab, go to State & Local ⮕ Other Forms ⮕ RI PTE Taxes.
2. Under the Rhode Island PTE Taxes section, check the File RI-PTE checkbox.
3. Complete the 1=Cash, 2=Accrual line to generate the RI-PTE.
4. Go to State & Local ⮕ Other Forms ⮕ RI Pass-Through Withholding.
5. Review the lines for any variations that apply to this client.
6. Review the calculations on the RI-PTE and the RI-1099E for each shareholder.

To generate PTE for a Fiduciary:

1. From the Input Return tab, go to State ⮕ Taxes ⮕ RI PTE Taxes.
2. Under the Rhode Island PTE Taxes section, check the File RI-PTE checkbox.
3. Complete the 1=Cash, 2=Accrual line to generate the RI-PTE.
4. Review the calculations on the RI-PTE and the RI-1099E for each.