topic What is pass-through business alternative income tax credit? in Get your taxes done using TurboTax

What is pass-through business alternative income tax credit?

mshechter — Mon, 09 Mar 2026 05:52:29 GMT

tubo tax says i can't efile my state return---i don't have any business alternative income tax cedit

Re: What is pass-through business alternative income tax credit?

markkwilder — Thu, 17 Feb 2022 14:01:40 GMT

I received the same message after installing latest Turbotax updates on 02/17/2022. I'm trying to e-file my NJ return. What's the deal Turbotax?

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 14:48:00 GMT

I am having the exact same problem.

This started happing when I dowloaded the latest Turbotax this morning... I was waiting for the update because previously, 2 forms were not ready... NJ state tax forms Sch NJ-DOP and NJ 2210.

This is VERY frustrating. I have been ready to file my returns for at least a week.

I have tried to investigate this ... do not where this credit shows up on the NJ return! If I could find it, I would override the amount (to 0).

Re: What is pass-through business alternative income tax credit?

hankl78 — Thu, 17 Feb 2022 15:24:24 GMT

I am also having this problem. And I have no "business".

Re: What is pass-through business alternative income tax credit?

jmg228 — Thu, 17 Feb 2022 15:38:56 GMT

I also received the same message after installing the latest Turbotax updates on 02/17/2022. I'm trying to e-file my NJ return.

Re: What is pass-through business alternative income tax credit?

dregina — Thu, 17 Feb 2022 15:44:38 GMT

Hey Group,

I'm in the same boat... just updated the latest New Jersey forms (2/17/2022) and getting an e-file ineligibility due to the NJ-BAIT message. I also do not have a business.

Re: What is pass-through business alternative income tax credit?

pdills — Thu, 17 Feb 2022 15:47:01 GMT

Gotta be an error on TT end because a lot of NJ folks, me included, are getting the "returns with pass-through business alternative income tax credit are not eligible for electronic filing turbotax" message

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 18:15:41 GMT

Just keep hoping that Intuit sees our complaints and issues an update!

Re: What is pass-through business alternative income tax credit?

mshechter — Thu, 17 Feb 2022 18:18:38 GMT

Just spoke to TT "agent"--they have no fix clue--blaming IRS for problem waiting for form update.

Re: What is pass-through business alternative income tax credit?

dregina — Thu, 17 Feb 2022 18:22:40 GMT

Thanks for the update (I think...) 😊

Re: What is pass-through business alternative income tax credit?

jmg228 — Thu, 17 Feb 2022 19:02:44 GMT

Hello Group,

I did some digging around after I saved my NJ tax file as a pdf. I also downloaded the NJ 1040 Tax instructions to see what this Pass-Through Business Alternative Income Tax Credit is. This amount will be shown on Line 62 of the NJ-1040. The amount comes from Schedule NJ-BUS-1, Part II, line 5; Schedule NJ-BUS-1, Part III, line 5; or from Schedule NJK-1.

This is my situation:

1. I have a timeshare, for 5 weeks, that I rented out in 2021. The rental generated income. IT IS NOT A BUSINESS.

2. Since the rental is considered income, that income is shown on Schedule NJ-BUS 1, as RENT; and Schedule NJ BUS-2, as RENT.

3. On my NJ-1040, this rental income is reported on Line 23, Net Gains or income from rents...(NJ-BUS-1, Part IV, line 4). IT IS NOT A BUSINESS.

4. On my NJ-1040, Line 62, Pass-Through Business Alternative Income Tax Credit, it is blank, no value shown, therefore it is zero. IT IS NOT A BUSINESS.

I believe the message appears because I show an income value on NJ BUS-1 and NJ BUS-2, although IT IS NOT A BUSINESS. I wonder, in order to avoid that NJ "Not Eligible for Electronic Filing" message, that TT Software developers also check for a value on Line 62 of the NJ-1040. If Line 62 is blank, no value, zero, then there should be the capability to e-file the NJ Tax return, even though there is a value shown on NJ BUS-1, NJ BUS-2.

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 19:38:21 GMT

OMG that is really horrible! How can TT be so lame?

Well, I owe NJ tax, so can mail in the return, but it takes so much longer for them to process paper returns. Will take forever for me to know it has been accepted!

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 19:40:07 GMT

Well, I don't have the BUS forms you mention. So, explain that!

Re: What is pass-through business alternative income tax credit?

Critter-3 — Thu, 17 Feb 2022 19:43:23 GMT

@bonniezimmer

This may be a temporary glitch in the system ... since you owe the state you have until 4/18 to file and pay so you have time to wait for the efile to be ready. In the meantime you can efile the fed now and come back for the state later. You can always send a payment now and efile or mail the return later. There are options.

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 19:47:17 GMT

I see that you cannot enter 0 on line 62 - although, for example, you can enter a 0 in the case of line 61. But clicking on line 62 does not tell you where the amount comes from!

Any ideas?

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 19:49:06 GMT

Right, I shall efile the fed and wait until the last minute before mailing in the NJ paper return, hoping that Turbotax has fixed things by then.

Re: What is pass-through business alternative income tax credit?

hankl78 — Thu, 17 Feb 2022 20:00:36 GMT

I’ll look at that NJ-BUS forms when I can but I did sell my NY home and move to NJ. TT told me I do not need to pay any taxes on the sale.

my line 62 shows nothing on the TT NJ form.

guess I’ll wait a couple of weeks and hope there is a correction

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Thu, 17 Feb 2022 20:36:13 GMT

Acoording to mshechter above,

Just spoke to TT "agent"--they have no fix clue--blaming IRS for problem waiting for form update.

Re: What is pass-through business alternative income tax credit?

jmg228 — Thu, 17 Feb 2022 20:58:40 GMT

The amount initially comes from the Federal Tax Schedule 1, Additional Income, line 5 and 10. Then it is put on the Federal Tax, in my case, 1040-SR Line 8, Other income. Then TT must transfer that information into the NJ Tax forms Schedule NJ-BUS-1, Part II, line 5; Schedule NJ-BUS-1, Part III, line 5. From there is goes onto NJ-1040, Line 23, Net gains or income from rents, etc. Again, in my case, NJ-1040, Line 62 is blank. I believe it is a TT issue with checks and transfers of data from Federal Tax information into the NJ tax forms.

Re: What is pass-through business alternative income tax credit?

bonniezimmer — Fri, 18 Feb 2022 12:14:07 GMT

Thanks for your explanation. My case should be simple ... I have no "other income" and no NJ schedules BUS-1 and BUS-2. NJ-1040, Line 23 is 0. Your Line 62 is blank as is mine. I have no idea where Line 62 comes from... and TT does not tell you, if you click on that amount. Do you know?