How to enter Kentucky 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.

Select your tax type:

Individual

1. Open the Kentucky Individual Return.
2. Press F6 to bring up Open Forms.
3. Enter PT to highlight the Form PTET-CR
4. Press Ok.
5. Enter the Pass-through entity name and click Create to open the Form PTET-CR.
6. Enter the information from the PTET-CR received for the taxpayer.

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Partnership

The KY Form PTE will generate automatically but tax will not be calculated on it until the election is made. If the Partnership would like to Elect to pay income tax at the entity level and generate the Form 740-PTEP:

1. Go to the KY Partnership Information Worksheet.
2. Scroll down to Part II - Tax Year and Filing Information.
3. Check the box Election to pay income tax at the entity level - QuickZoom to Form 740-PTET.
4. This will suppress the Form 740NP-WH and generate the PTE equivalent forms.
5. The PTET-CR will generate for each Partner showing the Kentucky income tax paid by the entity.

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S-Corporation

The KY Form PTE will generate automatically but tax will not be calculated on it until the election is made. If the S Corporation would like to Elect to pay income tax at the entity level and generate the Form 740-PTEP:

1. Go to the KY S Corporation Information Worksheet.
2. Scroll down to Part II - Tax Year and Filing Information.
3. Check the box Election to pay income tax at the entity level - QuickZoom to Form 740-PTET.
4. This will suppress the Form 740NP-WH and generate the PTE equivalent forms.
5. The PTET-CR will generate for each shareholder showing the Kentucky income tax paid by the entity.

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