Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

[ctchas44]

Same here

[andyb4]

Thanks for posting this question...I have the same situation.   The only line item on my return that I found mentioning a "Pass-Through Business Alternative Income Tax Credit" is line 62 of NJ-1040 Pg2 and the dollar amount is blank.  Wondering if I'm missing something?     

[JoePic]

Same issue, looks like intuit needs to do some more work

[MayaD]

Did you receive a K1?

For taxable years beginning on or after January 1, 2020, pass-through entities may elect to pay a Pass-Through Business Alternative Income Tax due on the sum of each of the member’s share of distributive proceeds. The member(s) may then claim a tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds.

[JoePic]

No K1s and is happening on my NJ return and my sons simple return

[rodsib]

I am getting the same error and I just spent 40 minutes on the phone with Intuit Support. No resolution, but I opened a case with them. I have no K-1's and I don't own a business. Teh support person could not see why I would get this error either. I am guessing that there is a glitch in the system that needs to be addressed. Also interesting to note that this is the first day that NJ Sch DOP was made available in the system; I don't know if it is related, but I would bet it is.

[Jan911]

I am having same issues.  I did not receive any K-1's and don't have any Pass-Through Business Alternative Income Tax Credit.  I agree that TT must have broken this part of the code when they updated for the NJ Sched DOP.  Hope they fix it soon - loosing LOTS of faith in TT this year.  So many glitches!!!

[tconroy]

Also having this exact same problem:

- W2 employee 

- Don't own an income-generating business

- Work from home 100% of the year

Can't understand why I'm getting this "Pass-Through Business Alternative Income Tax Credit". Can I opt out of the credit? I would rather file online. 

Does anyone know if this has anything to do with holding equity in a public company? That's the only significant change to my tax situation this year vs last year, and last year I did not need to mail my forms.

[Accountworx]

Same here! What's the work around or do we have to wait for another update?

Thanks!!

[gardenhand]

I wish I would have seen this before spending the better part of my morning trying to figure out what was wrong. Please fix this issue so I can file. I dont want to paper file.

[rodsib]

Replying to TConroy - If that is the case, anyone who owns stock would be unable to e-file in NJ. That seems unlikely to me.

[tconroy]

Hi @MayaD , since you are the only expert to respond to this post - can you help confirm for us if this is indeed a glitch in TurboTax related to the recently-released NJ Sch DOP form? Or something else?

Seems a lot of people are being told they need to file through the mail because of this tax credit, but as far as I can tell people in this thread are not business owners and/or receiving K1's. 

Looking at the instructions for the NJ-1040 form online, page 41 outlines this credit:

> Line 62 – Pass-Through Business Alternative Income Tax Credit

Enter your share of tax from Schedule NJ-BUS-1, Part II, line 5; Schedule NJ-BUS-1, Part III, line 5; or from Schedule NJK-1 received from an estate or trust. Enclose Schedule NJ-BUS-1 and a copy of your Schedule PTE-K-1 or Schedule NJK-1 with your return.

[tconroy]

I started a similar thread here.

Hopefully we can get some answers.

[Colombof1]

Following - I’m having the same issue as an NJ resident and I have no K1 form. I’m a W-2 earner.