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?
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.
No K1s and is happening on my NJ return and my sons simple return
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.
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!!!
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.
Same here! What's the work around or do we have to wait for another update?
Thanks!!
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.
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.
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.
Following - I’m having the same issue as an NJ resident and I have no K1 form. I’m a W-2 earner.
This is obviously a screw up by Turbo Tax. Tried my daughters tax return who is at college and has an $11 refund also gets the same message and I am sure she does not have this credit.
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)
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.
There's nothing worse than an "expert" who answers without reading the question.
It would be helpful if a an Intuit technician could respond and provide the issue and when to expect the situation to be rectified. Also, if there is a work around that would be helpful.
NJ resident with same problem using TT Premier Desktop. W2, 1099INT, and 1099DIV. Very vanilla. No K1, Partnership, LLC or S Corporation or any other thing as described on NJ Division of Taxation website for Pass-Through Business Alternative Income Tax Credit. Prior to today's software update, had a message "waiting for NJ Disposition of Property Form (NJDOP)", even though I didn't sell any mutual funds, stocks, property. We do not have a business.
Same income input sources as last year which have allowed NJ eFiling for many years. Cannot find a workaround. Called TT. They insisted that I file a paper return because of a change in NJ Tax law but could not answer my question as to what income source or whatever was responsible for producing this message. I do not understand this at all.
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.
Hi @fairfolk71 - you're in good company, seems like a lot of us are having the same issue!
In my discussion thread on this issue, I ended up purchasing the TurboTax live product and speaking with a tax expert/support rep. She informed me that this is a known issue that is under investigation by TurboTax, and confirmed this is a software issue and not an issue with your individual tax circumstances.
Unfortunately there are no workarounds at this time. Current guidance is to try again Sunday/Monday and hopefully it will have been fixed. Alternatively, you can contact TurboTax support and asked to be added to the queue for this issue. They will email you when it has been resolved.
So I did manage to get through to live support and they viewed my details looked up the message and said that they are still waiting for forms from NJ state. Couldnt give me any timeline. Told them message was mis-leading. Not much else to do but wait. I still think someone messed up somewhere. If you look at line 62 on your 1040 state it has this credit but it protected and empty.
Spent an hour on phone with TT before I had to move on to other things. I kept telling her that it was a software issue that tech developer needed to address since they broke during the forms update for the NJ Sched DOP. I didn't have any K-1's etc. and had wanted to efile earlier (I use TT desktop) but TT said that NJ Sched DOP had not been approved by State yet and to check back 2/17 to see if they updated it. I did that this morning, updated my desktop TT and then tried to submit to NJ. The software put a zero on line 62, added a NJ Bus-2 form with zeros. I tried a workaround to delete the form and manually override the zero on line 62 to blank BUT this did not work - evidently, the flag was still on that I had Pass-through Business Alternative income tax credit because TT still refused to efile and told me I had to paper file. I did get a case number and told person to escalate to software engineers they have a big problem - that was at noon EST today. When TT has a known error like this from the community, they should post it on the website that they are aware of it and working on it. The black hole of communication from TT corporate is frustrating!