How to enter South Carolina PTE in Lacerte

To claim the credit on an Individual

1. Go to Screen 20.
2. Under Passthrough K-1's in the upper left panel, select Partnership Information or S Corporation Information depending on the entity type.
3. From the Sections list, select the South Carolina Active Trade or Business Amounts section.
4. Enter the information received from the I-435.
5. Check the box for Tax paid at entity level
6. Review the calculation on Form I-335. Any amounts taxed at the entity level will reduce the taxes paid, and any remaining tax will show on the SC1040 Page 2, line 8.

To generate the PTE for a Partnership

1. Go to State & Local, Other Forms then South Carolina Form I-345 to open Screen 43.332 South Carolina Form I-435
2. Check the Elect to have active trade or business inc, taxed at 3% flat rate (MANDATORY) box.
3. In the other fields available, enter the amount of that line item that is attributed to SC active trade or business amounts. These are the amounts that will be taxed at the 3% rate.
4. Review the I-435

To generate the PTE for a S-Corporation

1. Go to State & Local, Taxes then South Carolina Taxes to open Screen 48.331 South Taxes
2. From the Sections list, select Active Trade or Business Income for Electing S Corporations (I-435)
3. Check the Elect to have active trade or business inc, taxed at 3% flat rate (MANDATORY) box.
4. In the other fields available, enter the amount of that line item that is attributed to SC active trade or business amounts. These are the amounts that will be taxed at the 3% rate.
5. Review the I-435