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How to enter a California PTE credit in Lacerte

SOLVEDby Intuit207Updated March 18, 2022

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. Go to Screen 20.1, Partnership Information.
  2. Scroll down to Line 15 - Credits and Withholding.
  3. 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. Go to Screen 20.2, S Corporation Information.
  2. Scroll down to Line 13 - Credits and Withholding.
  3. 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.

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