How to enter Arizona PTE in ProSeries

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

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.

Table of contents:

To claim the credit on an individual return:

1. Open the Arizona return.
2. For Resident Returns, enter the amount on the Entity-level income tax payment line.
   1. Press F6 to bring up Open Forms.
   2. Type A1 to highlight Other Add (140)
   3. Select OK.
   4. Enter the current year credit amount on line P.
3. For Nonresidents enter the amount on Entity-level income tax payment (NR)
   1. Press F6 to bring up Open Forms.
   2. Type AN to highlight Other Add (NR)
   3. Select OK.
   4. Enter the amount on line L.
4. For Part Year Residents enter the amount on the Entity-level income tax payment (PY)
   1. Press F6 to bring up Open Forms.
   2. Type AP to highlight Other Add (PY)
   3. Select OK.
   4. Enter the amount on line N.

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To generate PTE for a partnership:

1. Open the Arizona Partnership Information Worksheet.
2. Scroll down to Part II - Tax Year Information
3. Check the box for Annual Voluntary Election - Pass-Through entity is electing to pay tax at the entity level pursuant to H.B. 2838
4. Open the Schedule K-1 Worksheet.
5. For each partner that opts in check the box Check box if partner consents to have their pro-rata share of distributive shares of income included in the PTE elective tax calculation.
6. The tax is calculated on page 2 of Form 165 Part 2 and will flow to the 165 Schedule K-1 Part 6

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To generate PTE for an S corporation:

1. Open the Arizona S Corporation Information Worksheet.
2. Scroll down to Part II - Tax Year Information
3. Check the box for Annual Voluntary Election - Pass-Through entity is electing to pay tax at the entity level pursuant to H.B. 2838
4. Open the Schedule K-1 Information Worksheet.
5. For each shareholder that opts in check the box Check box if shareholder consents to have their pro-rata share of distributive shares of income included in the PTE elective tax calculation.
6. The tax is calculated on page 2 of Form 165 Part 2 and will flow to the 165 Schedule K-1 Part 6

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