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How to enter Minnesota PTE tax in ProSeries

by Intuit Updated 3 months ago

This article will help you report the Minnesota 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 an individual return:

  1. Open the Minnesota Individual return.
  2. Open the Schedule M1REF.
    1. Press F6 to bring up Open Forms.
    2. Type M1REF and press OK.
  3. Enter any allowable credit and Tax ID number on line 9.

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About the PTE election

Partnerships and S Corporations that do not have a partnership, LLC, or corporation, other than a disregarded entity, as a partner or shareholder, may elect to file and pay income tax at the entity level on behalf of their owners.

Single-member limited liability companies (SMLLCs) are not eligible to file Schedule PTE. 

The election is made by filing Schedule PTE by the due date or extended due date of the entity’s return. The election may only be made by qualifying owners who collectively own more than 50% of the qualifying entity. Once made, the election is irrevocable for the tax year and is binding on all owners of the qualifying entity.

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To generate PTE for a partnership:

  1. Open the Minnesota Partnership return.
  2. Open the Schedule PTE.
    1. Press F6 to bring up Open Forms.
    2. Type PTE and press OK.
  3. Check the Check this box to complete Schedule PTE checkbox.
  4. Review the calculations and make any adjustments as needed.

The program will calculate the Schedule PTE and carry the result to Form M2, line 2. The credit for each partner will flow to their Schedule KPI, line 30.

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To generate PTE for an S corporation:

  1. Open the Minnesota S Corporation return.
  2. Open the Schedule PTE.
    1. Press F6 to bring up Open Forms.
    2. Type PTE and press OK.
  3. Check the Check this box to complete Schedule PTE checkbox.
  4. Review the calculations and make any adjustments as needed.

The program will calculate the Schedule PTE and carry the result to Form M8, line 3. The credit for each shareholder will flow to their Schedule KS, line 30.

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