How to enter Hawaii 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.

Table of contents:

To claim the credit on an individual return:

For tax year 2023 PTE Credits are nonrefundable credits that may not be carried forward. Starting in tax year 2024 PTE credits are nonrefundable tax credits that may be used as a credit against taxes in subsequent years until exhausted.

1. Open the Hawaii state return.
2. Press F6 to bring up Open Forms.
3. Type 362 and click OK to open the Form N-362.
4. In Part I enter the information from the K-1 received.
5. Form N-362 will now generate, line 6 will show the amount applied to this year. Line 7 will show the amount carried over.

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To generate the PTE for a partnership:

1. Open the Hawaii return.
2. Go to the Schedule K-1 Worksheet.
3. For each partner check Yes or No for Election to pay entity level tax.
4. The Sch PTE will now generate to show the calculations.
5. Each partners portion of the credit will show on the Sch K-1 line 28.

To generate PTE for an S corporation:

To activate the PTE calculations:

1. Open the Hawaii return.
2. Go to the Schedule K-1 Worksheet.
3. For each shareholder check Yes or No for Election to pay entity level tax
4. The Sch PTE will now generate to show the calculations.
5. Each shareholder portion of the credit will show on the Sch K-1 line 16m.

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