This article will help you report the Illinois elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in Lacerte.
To claim the credit on an Individual return:
- Go to Screen 53.071, Illinois Credits.
- Scroll down to the bottom of the input and enter the amount from form K-1-P, line 53a, in Pass-through entity tax credit.
The credit will flow to form IL-1040, step 8.
To generate the PTE for a Partnership:
- Go to Screen 37.071, Illinois Miscellaneous Information.
- Scroll down to the Pass-through Entity Tax (PTE) section.
- Check the box for Electing to file and pay Pass-through Entity Tax.
The program will calculate the PTE Income Worksheet and print the result on form IL-1065, step 8, line 60. The credit for each partner will also flow to Schedule B, page 2, and be reported on their respective Sch K-1-P.
To generate the PTE for an S-Corporation:
- Go to Screen 43.071, IL Ordinary Income Adjustments.
- Scroll down to the Pass-through Entity Tax (PTE) section.
- Check the box for Electing to file and pay Pass-through Entity Tax.
The program will calculate the PTE Income Worksheet and print the result on form IL-1120, step 8, line 60. The credit for each partner will also flow to Schedule B, page 2, and be reported on their respective Sch K-1-P.
