PTI is covered in the following discussion.

PTI is covered in the following discussion.] Distributions of Previously Taxed Income (PTI) Before 1983, the S corporation income amount upon which the shareholder had paid tax, but which had not been distributed, was called Previously Taxed Income, or PTI. For tax years beginning after 1982, S corporations do not generate PTI, but the AAA represents a variation on the same theme; income that has been previously taxed to the shareholder can be distributed free of further tax. But what if the S corporation carried PTI into a post-1982 year?