How to enter Kentucky PTE in ProSeries

Starting in tax year 2022:

• Starting in March 2023, pass-through entities can elect to pay it's tax liabilities on behalf of it's individual partners, members, or shareholders for tax years beginning on or after January 1, 2022. This was retroactive for tax year 2022 returns.
• For taxable years beginning on or after January 1, 2023, an authorized person must file Form 740-PTET to make the election.
• For additional information, see the department's FAQ's.

Down below we'll go over how to enter PTE for Kentucky on Individual, Partnership, and S-Corporate returns in ProSeries:

Select your tax type:

Individual

1. Open the Kentucky Individual Return.
2. Press F6 to bring up Open Forms and enter PT to highlight the Form PTET-CR.
3. Press Ok.
4. Enter the Pass-through entity name and click Create to open the Form PTET-CR.
5. 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 Workheet.
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 740-PTET.
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 740-PTET.
5. The PTET-CR will generate for each shareholder showing the Kentucky income tax paid by the entity.

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