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How to enter a California PTE credit in ProConnect

SOLVEDby Intuit10Updated March 18, 2022

This article will assist you with entering a California PTE credit in Intuit ProConnect.

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 the Input Return tab.
  2. From the left of the screen, select Income and choose Passthrough K-1's.
  3. Select Partnership Info (1065 K-1).
  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. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Passthrough K-1's.
  3. Select S-Corp Info (1120S K-1).
  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.

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