How to enter South Carolina PTE in ProConnect Tax

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

1. Go to Input Return ⮕ Income ⮕ Passthrough K-1s and select the K-1.
2. Select the State & Local tab.
3. Scroll down to 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.

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To generate the PTE for a Partnership

1. Go to Input Return ⮕ State & Local ⮕ Other Forms ⮕ South Carolina Form I-345
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

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To generate the PTE for a S-Corporation

1. Go to Input Return ⮕ State & Local ⮕ Taxes ⮕ South Carolina Taxes.
2. Scroll down to the Active Trade or Business Income for Electing S Corporations (I-435) section.
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

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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.