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.
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 the 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 Electing Pass Through Entity Payment Return.
- Press F6 to bring up Open Forms.
- Type EPT and press OK.
- Review the calculations and make any adjustments as needed.
This will flow to the EPT-K1.
To generate the 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.
- Open the Electing Pass Through Entity Payment Return.
- Press F6 to bring up Open Forms.
- Type EPT and press OK.
- Review the calculations and make any adjustments as needed.
This will flow to the Alabama EPT-K1.