How to enter Colorado 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.

Table of contents:

To claim the credit on an Individual return:

1. Go to Screen 53, Other Credits
2. Under the St. Credits section select Colorado Credits to access Screen 53.261, Colorado Credits.
3. From the sections select Colorado Refundable Credits
4. Enter the amount in the Tax paid by composite return or SALT Parity election field.

For e-file purposes, entries may be required to create an electronic copy of the CO DR 0106K. These entries can be made on:

• Partnership: Screen 20.1, Partnership Information ⮕ Colorado Form K-1 (EF Only)
• S Corporation: Screen 20.2, Corporation Information ⮕ Colorado Form K-1 (EF Only)

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To generate the PTE for a Partnership:

1. Go to Screen 37, Miscellaneous Information.
2. Under St. Misc. Info select Colorado Composite/SALT Parity Tax to access Screen 37.262, Colorado Composite/SALT Parity Tax.
3. Under the Composite & SALT Parity (PTE) Income Tax Return section, check the box for SALT Parity Act/PTE election made for all qualifying partners.
   • This marks If pass-through entity is electing to be subject to tax at the entity level under the SALT Parity Act (section 39-22-342, C.R.S.) for this tax year, mark this box on page 1 of DR 0106, calculates tax on Part III of page 2, and the partners' share will be reported on Line 15 of the DR 0106K.
4. Enter all relevant information into fields related to estimated taxes, withholdings interest, and penalties.

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To generate the PTE for an S-Corporation:

1. Go to Screen 42, Miscellaneous Information.
2. Under St. Misc. Info select Colorado Miscellaneous to access Screen 42.261, Colorado Miscellaneous.
3. Under the Composite & SALT Parity (PTE) Income Tax Return section, check the box for SALT Parity Act/PTE election made for all qualifying shareholders.
   • This marks "If pass-through entity is electing to be subject to tax at the entity level under the SALT Parity Act (section 39-22-342, C.R.S.) for this tax year, mark this box" on page 1 of DR 0106, calculates tax on Part III of page 2, and the shareholders' amount will be reported on Line 15 of the DR 0106K.
4. Enter all relevant information into fields related to estimated taxes, withholdings interest, and penalties.

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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.