Cynthiad66
Expert Alumni

State tax filing

d@eyhyoungkim - You may not be directly claiming any of the credits but there may be information on the return that triggers this form.  This is a new law enacted for 2020 taxes for NJ.  Sometimes the form may interact with other deductions on the return.  Below is some additional information  about the form.

 

For New Jersey purposes, income and losses of a pass-through entity are passed through to its owners. However, the law allows pass-through entities to elect to pay tax due on the owner’s share of distributive proceeds. The owner(s) may then claim a refundable tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds.

 

Pass-through entities included under this law are:

  • Partnerships;
  • federal S corporations that have made the New Jersey S corporation election; and
  • Limited liability companies (LLCs).

The entity must have at least one member who is liable for tax on their share of distributive proceeds pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., in a taxable year.

 

Single member limited liability companies and sole proprietorships may not elect to pay the Pass-Through Business Alternative Income Tax.

 

“Distributive proceeds” means the net income, dividends, royalties, interest, rents, guaranteed payments, and gains of a pass-through entity, derived from or connected with sources within New Jersey.

 

Now if none of this applies to you, you might be able to delete the form if it is listed separately..  Here is how to delete a form:

 

Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  1. Open or continue your return in TurboTax.
  2. In the left menu, select Tax Tools and then Tools.
  3. In the pop-up window Tool Center, choose Delete a form.
  4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

 

 

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