How to enter Kansas 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.

Individual

1. Go to Screen 53.061, Kansas Credits.
2. Under the Kansas Refundable Credits section, enter the amount in the Credit for tax paid on K-120S field.
   • This flows to Line 26 of Form K-40.

Partnership

1. Go to Screen 37.061, Kansas Miscellaneous Information.
2. Under the Kansas Information section, find the lines for SALE Parity Election (PTET).
3. Select one of the two checkboxes:
   • Electing to be subject to tax at the entity level
     • This marks box N "Are you electing to be subject to tax at the entity level?" on page 1 of KS K-120S, calculates tax on page 2, and completes Part IV - Partners or shareholders distribution of income on page 5.
   • Electing to be subject to tax at the entity level AND to tax 100% of the income for Kansas residents.
     • This marks box O "Mark this box if electing to be taxed at the entity level and wishing to tax 100% of the income for Kansas residents" on page 1 of KS K-120S, calculates tax on page 2, and completes Part IV - Partners or shareholders distribution of income on page 5.

A report for those electing to pay income tax on the K-120S is generated, called the K-9 Kansas Statement.

S Corporation

1. Go to Screen 42.061, Kansas Miscellaneous Information.
2. Under the Kansas Information section, find the lines for SALE Parity Election (PTET).
3. This marks box O "Mark this box if electing to be taxed at the entity level and wishing to tax 100% of the income for Kansas residents" on page 1 of KS K-120S, calculates tax on page 2, and completes Part IV - Partners or shareholders distribution of income on page 5.
   • Electing to be subject to tax at the entity level
     • This marks box N "Are you electing to be subject to tax at the entity level?" on page 1 of KS K-120S, calculates tax on page 2, and completes Part IV - Partners or shareholders distribution of income on page 5.
   • Electing to be subject to tax at the entity level AND to tax 100% of the income for Kansas residents.
     • This marks box O "Mark this box if electing to be taxed at the entity level and wishing to tax 100% of the income for Kansas residents" on page 1 of KS K-120S, calculates tax on page 2, and completes Part IV - Partners or shareholders distribution of income on page 5.

A report for those electing to pay income tax on the K-120S is generated, called the K-9 Kansas Statement.