How to enter Colorado PTE in ProConnect Tax

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. From the Input Return tab, go to State & Local ⮕ Other Credits ⮕ CO Credits.
2. Under the Colorado Refundable Credits section towards the bottom of the screen, 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: Income ⮕ Passthrough K-1's ⮕ Partnership Info (1065 K-1) ⮕ State & Local ⮕ Colorado Form K-1 (EF Only)
• S Corporation: Income ⮕ Passthrough K-1's ⮕ S-Corp Info (1120S K-1) ⮕ State & Local ⮕ Colorado Form K-1 (EF Only)

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Partnership

1. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ CO Composite/SALT Parity Tax.
2. 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.
3. Enter all relevant information into fields related to estimated taxes, withholdings interest, and penalties

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S-Corporation

1. From the Input Return tab, go to State & Local ⮕ Miscellaneous ⮕ CO Miscellaneous.
2. 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.
3. Enter all relevant information into fields related to estimated taxes, withholdings interest, and penalties

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