A Pass-Through Entity (PTE) is a business, such as a partnership or S corporation, that passes its income, deductions, gains, and losses through to its owners. Oklahoma allows certain PTEs to elect to pay Oklahoma tax at the entity level.
If you received income or a loss from an electing PTE, you may need to make an adjustment on your Oklahoma return.
Depending on your situation, the adjustment may be reported as either:
- Additions to Income, or
- Subtractions from Income
These adjustments help ensure income or losses from an electing PTE are taxed correctly on your Oklahoma return.
Loss Distributed by an Electing PTE (Addition to Income)
When Do I Enter an Amount?
Enter an amount if you received a loss from an Oklahoma electing PTE that was distributed to you and is being reported on your Oklahoma return.
Program Navigation
Oklahoma Return > Additions to Income > Oklahoma Loss Distributed by an Electing PTE
Step-by-Step Instructions
- Review your Schedule K-1 or other information provided by the partnership or S corporation.
- Look for any loss distributed by an Oklahoma electing PTE.
- Enter the loss amount in Oklahoma Loss Distributed by an Electing PTE.
- Continue through the Oklahoma interview.
Example
You received a Schedule K-1 showing a $2,000 loss from an Oklahoma electing PTE.
- Enter $2,000 in Additions to Income > Oklahoma Loss Distributed by an Electing PTE.
Income Distributed by an Electing PTE (Subtraction from Income)
When Do I Enter an Amount?
Enter an amount if you received income from an Oklahoma electing PTE that was distributed to you and is included in your federal income.
Program Navigation
Oklahoma Return > Subtractions from Income > Oklahoma Income Distributed by an Electing PTE
Step-by-Step Instructions
- Review your Schedule K-1 or other information provided by the partnership or S corporation.
- Identify any income distributed by an Oklahoma electing PTE.
- Enter the income amount in Oklahoma Income Distributed by an Electing PTE.
- Continue through the Oklahoma interview.
Example
You received a Schedule K-1 showing $5,000 of income from an Oklahoma electing PTE.
- Enter $5,000 in Subtractions from Income > Oklahoma Income Distributed by an Electing PTE.
Frequently Asked Questions
What is an electing PTE?
An electing PTE is a partnership or S corporation that has chosen to pay Oklahoma tax at the entity level rather than having the tax paid entirely by the owners on their individual returns.
Where do I find the amount to enter?
The amount is typically reported on your Schedule K-1 (Form 1065 or Form 1120-S), or Oklahoma information provided by the partnership or S corporation.
Do I need to enter amounts in both Additions and Subtractions?
Maybe. If you received both income and loss items from one or more Oklahoma electing PTEs, you may need to enter amounts in both sections of your Oklahoma return.
In general:
- Oklahoma Loss Distributed by an Electing PTE is entered in Additions to Income.
- Oklahoma Income Distributed by an Electing PTE is entered in Subtractions from Income.
Review the information provided by the electing PTE to determine which amounts apply to your situation.
What if I did not receive a Schedule K-1?
Contact the partnership or S corporation that distributed the income or loss. They can provide the information you'll need to complete your Oklahoma return.
What if I am not sure whether the PTE made the Oklahoma election?
Review the Oklahoma information provided with your Schedule K-1 or contact the partnership or S corporation. They can tell you whether the entity elected to pay Oklahoma tax as an electing PTE.