How to enter North Carolina PTE in Lacerte

Down below we'll go over how to enter PTE for North Carolina on Individual, Partnership, and S Corporate returns in Lacerte.

Table of contents:

Individual

1. Go to Screen 51.241, North Carolina Modifications.
2. Scroll down to the section that matches the type of modification you'd like to make, and enter the amount in the following field:
   • Other Additions (Sch S/Sch PN-1) ⮕ Taxed Pass Thru Entity Loss
   • Other Subtractions (Sch S/Sch PN-1)⮕Taxed Pass Thru Entity Income
     • Entries in these fields influence Line 38.

For e-file purposes, additional entries may be required under North Carolina NC K1 (E-file only). These entires do not impact Line 38 of the state tax return. Rather, they are used to create an electronic copy of the respective NC K-1.

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Partnership

1. Go to Screen 37.241, North Carolina Miscellaneous Information.
2. Under the North Carolina Miscellaneous section, check the box for Partnership is filing as Taxed PTE.
   • This marks "Is the partnership making the election to be a Taxed partnership for tax year 2023?" on page 1 of D-403 and calculates tax on page 3.
   • For nonresident partners, the amount flows to the Nonresident's Share of Net Tax Paid by the Manage of the Partnership on their Sch NC K-1.

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S-Corporation

1. Go to Screen 42,241, North Carolina Miscellaneous Information.
2. Under the North Carolina Miscellaneous section, check the box for S corporation making the election to be a Taxed S corporation.
   • This marks "Is the S corporation making the election to be a Taxed S corporation for tax year 2023?" on page 1 of D-401S and calculates tax on page 2.
   • For nonresident shareholders, the amount flows to the Nonresident's Share of Net Tax Paid by the Manage of the S Corporation on their Sch NC K-1.
   • CD-429 PTE is generated. If needed, overrides are available on Screen 10, Estimates, in the 2024 North Carolina Pass-Through Entity Estimates (CD-429 PTE) section.

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