How to enter Colorado PTE in ProConnect Tax

To claim the credit on an Individual return:

1. Go to Input Return ⮕ 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)

To generate the PTE for a Partnership:

1. Go to Input Return ⮕ 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

To generate the PTE for an S-Corporation:

1. Go to Input Return ⮕ 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