How to enter North Carolina 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.

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. 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

For e-file purposes, additional entries may be required under North Carolina NC K1 (E-file only). These entries do not impact 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 2024?" 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.
3. Estimated tax payments made and adjustments for next year can be entered on Screen 42.241 North Carolina Estimates.

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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 2024?" 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 2025 North Carolina Pass-Through Entity Estimates (CD-429 PTE) section.

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