NJ state: "Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing" - but I don't have a Business or K1?

[tconroy]

While attempting to complete my e-file for New Jersey, I am getting this error:

"Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing".

I do not want to print/mail my return. I want to e-file.

I am:

- a W2 employee.

- Work from home 100% of the year.

- Live in NJ, but work for a company based out of NYC. 

- Don't own an income-generating business.

- Have not received a "K1" (not entirely sure what that is).

- Did not inherit income from an estate or trust.

I am seeing several threads on this same issue:

- example1

- example2

Of note: Today was the first day that the NJ Sch DOP form was added to TurboTax. Based on the timing it seems possible that this is related, as I was not receiving this error while working on my NJ return prior to today.

[Colombof1]

Following. I’m having the same issue!

[robtalksinmaths]

Subbing - I'm having the same issue. Trying to call customer service now!

[tconroy]

Based on convo in one of the other threads, it looks like this might be a "sit on it for a few days and try again" situation:

@ethosian shared:

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Spent an hour with support, no resolution.  Told me to wait a few days.

All lines are blank for Pass-Through Business Alternative Income Tax Credit on my forms when I print. 

No Schedule K-1s.

NJ-1040, Line 62 (Blank)

NJ1040-ES, Part V, Line 20 (Blank)

NJ1040-ES, Part VII, Line 25 (Blank)

---

And similarly, @robtalksinmaths  shared:

Their rep just told me essentially the same thing - wait til Sunday/Monday and try again. Apparently this is happening to about 1/3 of states & they're hearing from accountants that there's some kind of "delay". Didn't fully understand.

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Would love if Intuit/TurboTax could weigh in on this thread and confirm if the above is correct! It seems likely to me this is a bug in the product and not in our taxes.

[Bryan39]

Same situation. TurboTax please fix this!

[tconroy]

In another thread, user @jhanley86 commented:

I am having the same issue. I think this is because of any cryptocurrency gains. The platforms are pass through businesses I believe which means they pass down the tax responsibility to you to avoid the "business" tax and they can file as an individual. I am not 100% yet that I am correct, but it is my assumption from what I've been reading.

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While this doesn't pertain to my personal situation (I have not attached any crypto forms to my return), it could be something for others to consider.

[tconroy]

Another update from me: I bit the bullet and upgraded to the Live version of TurboTax to speak with live tax professionals. 

The professional I chatted with informed me: This is a known issue, and is being actively investigated by Intuit/TurboTax. She also confirmed that this is a software bug with the TurboTax product, and _is not_ an issue relating to an individuals tax situation. 

I was informed I was being added to a queue to be informed on when this issue is fixed. I encourage you all to reach out to support to be placed on the same queue to receive an email when this situation is resolved. 

Very frustrating, and upset I am out a significant dollar amount due to a bug in TurboTax. 

[tconroy]

The above has been confirmed by Employee Tax Expert @RobertB4444 in another thread (link)

This is a known issue caused by an update to the New Jersey forms that were just released. It is being worked on and you should keep checking back to see if it is fixed.

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[esrick]

Don't bother calling - they were clueless.

[esrick]

Your person was far more knowledgeable than mine. She kept asking if I had a business, then "resolved" my issue by sending me a link about the law. Know the law - do not have any pass through activities. And I was on the phone with her for 1/2 hr. How did she not know about this glitch?! Frustrating!

[edelesandro]

Same problem here. I have no idea what this credit is I am so confused.

[Bryan39]

It seems TurboTax resolved this issue. Nice work!

[AJ20201]

Same for me ! I have no business. Spent hour and a half on the phone and got no where. Spent all day yesteday totally stressed out... Someone else from Turbo tax is supposed to look into this and e-mail me.  Sorry eveyone is going through this too but I felt a little relief to know its not just me... So I appreciate your Posts.

[TeresaM]

Our team is investigating this error message and more data would assist us.  It would help to have a diagnostic file which is a sanitized copy of your tax return that has all of your personal information removed but still has all of the forms and numbers entered. You can send one to us by following the directions below and posting the token number here so we can access the sanitized return. Many thanks.

 TurboTax Online:

1. Sign in to your online account.
2. Click on Tax Tools on the left tool bar
3. Select Tools
4. In the pop-up screen, click on “Share my file with agent”
5. Click OK on the message that a diagnostic file will be sanitized and transmitted to us.
6. Please provide the Token Number.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in top menu bar
3. Select “Send Tax File to Agent”
4. Click Send on the message and the tax file will be sanitized and transmitted to us.
5. Please provide the Token Number.

[Cheryl1234]

I am also having this problem and was told it’s a glitch with no resolution yet