How to enter Massachusetts ELT (PTE) in ProSeries

This article will help you report the elective pass-through entity tax (sometimes called PTE, PTET, PET, or SALT workaround) and the resulting credit.

Before you start:

• ProSeries does support electronical filing of the Massachusetts Entity Level Tax and the Form 63D-ELT payment.
• To determine if your client is eligible for Entity Level Tax (also known as PTE or Pass Through Entity Tax) see PTE Eligibility.

Table of contents:

To claim the PTE credit for 1040:

1. Open the Massachusetts return.
2. Open Schedule CMS: Credit Manager Schedule.
   1. Press F6 to bring up Open Forms.
   2. Type CMS to highlight CMS.
   3. Click OK to open the Schedule CMS.
3. Scroll down to Section 4 - Refundable credits received from Massachusetts K-1 schedules.
4. In 4b select ELTCRD.
5. Complete the remainder of the columns based on the information from the Massachusetts K-1 schedules.

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To generate the PTE for a 1065

1. Open the Massachusetts Partnership Information Worksheet.
2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).

• ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
• Section 1 of the form 63D-ELT will populate based on the income from the Schedule SK-1 for the total number of qualified partners.
• The partners portion of the Chapter 63D credit will be completed at the bottom of the Schedule 3K-1 under Partner’s Share of Chapter 63D Refundable Credit.

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To generate the PTE for an 1120S:

1. Open the Massachusetts S Corporation Information Worksheet.
2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).

• ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
• Section 1 of the form 63D-ELT will populate based on the income from the Schedule SK-1 for the total number of qualified shareholders.
• The shareholders portion of the Chapter 63D credit will be completed at the bottom of the Schedule SK-1 under Shareholder's Share of Chapter 63D Refundable Credit.

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To generate the PTE for a 1041:

1. Open the Massachusetts Fiduciary Information Worksheet.
2. Scroll down to Part II - Information Needed to Complete Massachusetts Return.
3. Check the box for Annual Voluntary Election - Pass-through entity has elected to pay tax at the entity level pursuant to MGL ch 63D (this election is irrevocable).

• ProSeries will automatically enter the total number of members in pass through entity’s and the total number of qualified members at the top of Form 63D-ELT.
• Section 1 of the form 63D-ELT will populate based on the income from the Schedule 2K-1 for the total number of qualified beneficiaries.
• The partners portion of the Chapter 63D credit will be completed at the bottom of the Schedule 2K-1 under Beneficiaries Share of Chapter 63D Refundable Credit.

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