How to enter Iowa 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.

Table of contents:

To claim the credit on an Individual

1. Go to Input Return ⮕ Income ⮕Passthrough K-1's. From this menu, select the type of activity:
   • Partnership Info (1065 K-1)
   • S-Corp Info (1120S K-1)
   • Estate or Trust Info (1041 K-1)
2. Go to Input Return ⮕ State & Local and scroll down to the Iowa Credits section.
3. Under the Schedule CC subsection, enter the amount from IA Schedule K-1, Part III in the Amount of credit received from PTE field.
   • This amount will flow to the IA Schedule CC.

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To generate the PTE for a Partnership

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident partner, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Partner Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2026 Composite Estimated Tax.

In the event that the partnership receives a credit on a K-1, go to the Passthrough K-1's workspace and select the State & Local tab. Under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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To generate the PTE for a S-Corporation

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident shareholder, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Shareholder Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2026 Composite Estimated Tax.

In the event that the S-corporation receives a credit on a K-1, go to the Passthrough K-1's workspace and select the State & Local tab. Under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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To generate the PTE for a Fiduciary

The IA PTE-C and IA Voucher (PTE-C) generate automatically when there is a nonresident beneficiary, and as long as Exclude from Composite Return is not checked.

• The Exclude from Composite Return checkbox is located under the Iowa Information section of the Beneficiary/Grantor Information screen.

Additional information may be needed on State & Local ⮕ Other Forms ⮕ IA PTE-C - Composite Return.

Should you need to make overrides to voucher information, go to State & Local ⮕ Estimates ⮕ IA Estimates ⮕ Iowa 2026 Composite Estimated Tax.

In the event that the estate or trust receives a credit on a K-1, go to the Passthrough K-1's workspace and select the State & Local tab. Under Iowa Credits ⮕ Schedule CC, enter the amount in the Amount of credit received from PTE field.

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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.