How to enter Arizona PTE in Lacerte

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:

Individual

1. Go to Screen 53, Other Credits.
2. From the top left, select Arizona Form 355.
3. You should now be in Screen 53.104, Arizona Credit for Entity-Level Income Tax Paid (PTE).
4. Under Current Year Credit, enter the amounts from the K-1 in the applicable Regular Tax and SBI Tax fields.
   • This amount flows to Form 140NR, line L (page 5) and Form 140, line P (page 5).

Back to Table of Contents

Partnership

1. Go to Screen 37.101, Arizona Information.
2. Under the Partnership Tax Paid At Entity Level (PTE) section, check Electing PTE taxes or enter the amount paid in Arizona PTE taxes paid in 2024 for taxable years prior to 2024.
   • The tax is calculated on page 2, part II of Form 165.

Additional entries may be needed in this section, depending on your client needs. For example:

• Arizona PTE taxes paid in 2023: 165 Sch K-1, part VII, line 12
• Arizona PTE taxes paid in 2024: 165 Sch K-1, part VII, line 13
• Comparable PTE taxes from other states paid in 2023: 165 Sch K-1, part VII, line 14
• Comparable PTE taxes from other states paid in 2024: 165 Sch K-1, part VII, line 15

Back to Table of Contents

S Corporation

1. Go to Screen 42.101, Arizona Miscellaneous.
2. Under the Arizona PTE Taxes section, check Electing PTE taxes or enter the amount paid in Arizona PTE taxes paid in 2024 for taxable years prior to 2024.
   • The tax is calculated on page 2, part II of Form 120s.

Additional entries may be needed in this section, depending on your client needs. For example:

• Arizona PTE taxes paid in 2023: 120S Sch K-1, part VI, line 9
• Arizona PTE taxes paid in 2024: 120S Sch K-1, part VI, line 10
• Comparable PTE taxes from other states paid in 2023: 120S Sch K-1, part VI, line 11
• Comparable PTE taxes from other states paid in 2024: 120S Sch K-1, part VI, line 12

If needed, overrides are available in the Arizona PTE Taxes section of Screen 46.101, Arizona Schedule K-1 (NR) Overrides.

The shareholder can also make an election to opt out. To do this, go to Screen 46.101, Arizona Schedule K-1 (NR) Overrides

Back to Table of Contents