How to enter a California PTE credit in ProConnect Tax

California A.B. 150, also known as the Pass-Through Entity Elective tax, allows state tax on passthrough income to be paid at the entity level at a flat rate of 9.3%. The law is effective for tax years beginning on or after January 1, 2021, and before January 1, 2026.

For business filers:

• See California PTE tax in a partnership for 565 and 568 returns, or
• See California PTE tax in a 100S for S corporations

For individual filers:

Follow these steps to enter a PTE tax credit received on a partnership K-1:

1. On the left-side menu, select Income.
2. Click on Passthrough K-1's.
3. Select the Partnership Info (1065 K-1) screen.
4. From the top of the screen, select Lines 11-20.
5. Scroll down to the Line 15 - Credits and Withholding section.
6. Enter the 15f amount in Credit from passthrough elective entity tax (PTE) {CA}.

Follow these steps to enter a PTE tax credit received on an S corporation K-1:

1. On the left-side menu, select Income.
2. Click on Passthrough K-1's.
3. Select the S-Corp Info (1120S K-1) screen.
4. From the top of the screen, select Lines 11-17.
5. Scroll down to the Line 13 - Credits and Withholding section.
6. Enter the 13d amount in Credit from passthrough elective entity tax (PTE) {CA}.

The PTE elective tax credit will flow to form 3804-CR. This is a nonrefundable credit. Any credit disallowed based on these provisions will carryover to future returns.