Business & farm

The credit seems to be a state income tax payment made by the entity and then passed over to the individuals as a credit towards their tax liability.  It is used to offset the tax on the individual return. The credit may not reduce the tax liability below the statutory minimum tax. Excess credits may be carried forward for twenty years. 

• NJ BAIT Information
• Corporation Minimum Tax Rates

You can enter the amount you are able to utilize for the credit amount and you could enter it as follows:

1. Enter your K1 in the federal return under S-corps, Partnerships, and Trusts > K-1
2. Once you begin your state return, you will come to the screen 'Schedule NJ-K-1 Received?' answer 'Yes'
3. Continue through the NJ K-1 screens until you each 'Pass-Through Business Alternative Income Credit' entry
4. Enter your BAIT amount from your K-1.
5. See the images below.

BAIT Extension Information: 

Returns due between March 15, 2022 and June 15, 2022 are now due by June 15, 2022.This includes the 2021 PTE Election, 2021 PTE-100 Tax Returns, 2021 PTE-200-T, 2021 Revocation forms, and 2022 Estimated Payments.

• Chapter 320 Corrected Copy