How to enter North Carolina PTE in ProConnect Tax

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

Table of contents:

Individual

1. From the Input Return tab, go to State & Local ⮕ Modifications ⮕ NC 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 Income ⮕ Passthrough K-1s ⮕ State & Local ⮕ North Carolina NC K1 (E-file only). These entries 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. From the Input Return tab, go to State & Local ⮕ Miscellaneous Information ⮕ NC 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 2022?" 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. From the Input Return tab, go to State & Local ⮕ Miscellaneous ⮕ NC Miscellaneous.
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 2022?" on page 1 of D-401S and calculates tax on page 3.
   • 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 under Payments, Penalties, & Extensions ⮕ Estimated Tax ⮕ Other State & Local, in the 2023 North Carolina Pass-Through Entity Estimates (CD-429 PTE) section.

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