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How to enter Arizona PTE in ProSeries

SOLVEDby IntuitUpdated 1 year ago

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

Table of contents:

To claim the credit on the 1040 return:
To generate PTE on a 1065:
To generate PTE on a 1120S:

To claim the credit on an individual return:

  1. Open the Arizona return.
  2. For Resident Returns enter the amount on the Other Additions Statement (140).
    1. Press F6 to bring up Open Forms.
    2. Type A1 to highlight Other Add (140)
    3. Click OK to open the Other Additions Statement.
    4. Enter the amount on line P.
  3. For Nonresidents enter the amount on the Other Additions Statement (NR)
    1. Press F6 to bring up Open Forms.
    2. Type AN to highlight Other Add (NR)
    3. Click OK to open the Other Additions Statement.
    4. Enter the amount on line K.
  4. For Part Year Residents enter the amount on the Other Additions Statement (PY)
    1. Press F6 to bring up Open Forms.
    2. Type AP to highlight Other Add (PY)
    3. Click OK to open the Other Additions Statement.
    4. Enter the amount on line O.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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