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How to enter Alabama PTE tax in ProSeries
by Intuit• Updated 1 month ago
This article will help you report the Alabama elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in ProSeries.
Table of contents:
‣ To claim the credit on the 1040 return: |
‣ To generate PTE on a 1065: |
‣ To generate PTE on a 1120S: |
‣ Adding the PTE information to the letter |
To claim the credit on an individual return:
- Open the Alabama return.
- Open the Schedule CP.
- Press F6 to bring up Open Forms.
- Type CP and press OK.
- Complete the table on Section A.
The credit will flow to line 26 of Form 40.
To generate PTE for a partnership:
- Open the Alabama Partnership return.
- On the Alabama Partnership Information Worksheet scroll down to Part VIII.
- Check the box for Electing Pass-Through Entity Tax.
- Open the Form EPT.
- Review the calculations and make any adjustments as needed.
- If you plan on e-filing the Form EPT go to the Federal Partnership Information Worksheet.
- In the e-file selection table check the Alabama Form EPT checkbox.
- When e-filing select both the regular state return, and the Alabama Form EPT.
This will flow to the EPT-K1.
To generate PTE for an S corporation:
- Open the Alabama S Corporation return.
- On the Alabama S Corporation Information Worksheet scroll down to Part VII.
- Check the box for Electing Pass-Through Entity Tax.
- pen the Form EPT.
- Review the calculations and make any adjustments as needed.
- If you plan on e-filing the Form EPT go to the Federal Partnership Information Worksheet.
- In the e-file selection table check the Alabama Form EPT checkbox.
- When e-filing select both the regular state return, and the Alabama Form EPT.
This will flow to the Alabama EPT-K1.
To add the Form EPT instructions to the client letter:
- Open the Federal Partnership or S Corporation return.
- From the Tools menu, select Letters, then Manage Client Specific Letters.
- Create new letter if you do not yet have one and select the Standard Client Letter as the Template.
- Name the letter and select Next.
- Scroll down to the bottom of the letter, click below [@EndStateText].
- From the Insert menu select Page Break.
- On the right side of the screen select the State Paragraph tab.
- Under Alabama double click on Form EPT to add the filing instructions to the letter.
- From the File menu, select Exit Letter. Choose Yes when prompted to save.
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