ProConnect HelpIntuit HelpIntuit

How to enter a California PTE credit in ProConnect Tax

by Intuit Updated 1 week ago

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:

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.

Starting with tax year 2022, a partner or shareholder may be able to claim an Other State Tax Credit for their pro rata share of PTE tax paid to another state. Review the Schedule S instructions for more information.

ProConnect Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads