topic 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing". But did not enter any such info. in State tax filing

2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing". But did not enter any such info.

eyhyoungkim — Mon, 09 Mar 2026 05:52:10 GMT

I am not claiming any such credit. Why can't I efile?

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

Cynthiad66 — Thu, 17 Feb 2022 19:31:59 GMT

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:

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

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

wkndracr — Fri, 18 Feb 2022 00:41:15 GMT

I am having the same issue. Line 55 is where you're supposed to claim this credit, but it is blank on my printed return. There are also no forms related to any sort of pass through business listed under "tools" as mentioned above. I've deleted my NJ return and started it over from scratch. Maybe just a glitch in the software? For now, I've gone through the motions as if i was going to file by mail, but I would still like to e-file.

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

frankdigiu — Mon, 21 Feb 2022 14:28:12 GMT

I had the same issue with asking me to mail my New Jersey return in. But today I opened my Turbo tax software and it did a New Jersey Update and now its not asking to mail in the New Jersey return. I did not edit or change my return for New Jersey . Nor did I delete any forms from the return.

Was this a software issue or did the update fix it?

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

Cynthiad66 — Tue, 22 Feb 2022 16:14:24 GMT

@@frankdigiu This was a forms issues that has been going on for a few weeks. It is finally resolved because you are the second person today that has been able to update and file.

@wkndracr - Seems like the NJ form has been added and is ready to update to allow you to file your return. NJ has updated the form for this Business Pass Through which may or may not directly relate to your return but is required fir e-filing. Please try to file again.

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).

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

wkndracr — Tue, 22 Feb 2022 16:26:14 GMT

Yes, after seeing the other reply I logged back in yesterday and was able to efime my NJ return. Thanks!

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

pshen — Fri, 25 Mar 2022 20:57:41 GMT

as of today 3/25/2022, I have updated Turbox Premier, it still can not e-file due to the message

"returns with pass-through business alternative income tax credit are not eligible for electronic filing". I do have NJ PTE which is allowed to NJ efiling. Anyone else with similar issue? How soon can Turbox Tax fix it?

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

blackie411 — Sun, 17 Sep 2023 16:30:23 GMT

I have the same issue and it is now 18 months later than this last post. Why has Turbo Tax not fixed this issue in all this time?

I have a BAIT tax credit for 2022 and the Turbo tax message is that this prevents eFiling. Other software programs allow eFiling when there is a BAIT credit, so why not Turbo Tax? Rather than acknowledge it is a software bug, the Turbo Tax message states it is a NJ Division of Taxation rule. HOGWASH!

Fix the issue, as denying eFiling ability when it is the software and not the NJ Division of Taxation's fault is frankly misrepresentation and an affront to Turbo Tax users. If not fixed this coming week, it will be bye-bye Turbo Tax!

Re: 2022 NJ Return. TT says "Returns with Pass-Through Business Alternative Income Tax Credit are...

JJ12345678 — Wed, 27 Sep 2023 16:48:34 GMT

Same issue. It is so frustrated.