topic Re: Cannot File NJ return because I have pass through BAIT. in State tax filing

Can Not File NJ return because I have pass through BAIT.

Retired Fool — Sat, 17 Aug 2024 12:16:13 GMT

Turbo Tax downloaded version I can not efile NJ because I am reporting NJ PTE that was paid on my behalf by a partnership. The Partnership is registered in NJ and provided me with a NJ K1 reflecting this. They also provided me with the INFO ONLY copy of NJ SCH PTE K1. Last year my accountant was able to efile the NJ return using her system and a colleague is able to efile using the H&R Block software. Everything I research seems to say it can be efiled. Is it possible I am missing something with turbotax? How can I efile this return. Thanks for your help.

Re: Can Not File NJ return because I have pass through BAIT.

fanfare — Sat, 17 Aug 2024 21:04:52 GMT

Schedule NJ-BUS-2 or NJ-BUS-1 may help you to take your portion of the refundable credit.

@Retired Fool

Re: Can Not File NJ return because I have pass through BAIT.

Retired Fool — Tue, 20 Aug 2024 12:37:19 GMT

Thanks, the post was not about getting the credit, I am getting the credit on the return. The post was about Turbotax incorrectly saying because I have the credit I must paper file, which I know is not the case.

Re: Can Not File NJ return because I have pass through BAIT.

CuriousDom — Tue, 27 Aug 2024 16:03:58 GMT

Are you reporting it on line 56 of Form NJ-1040NR?

Re: Can Not File NJ return because I have pass through BAIT.

raaa428 — Sun, 16 Mar 2025 13:33:47 GMT

Does anyone know if this has been resolved? Had this problem last year and again this year.

Re: Can Not File NJ return because I have pass through BAIT.

DaveF1006 — Wed, 26 Mar 2025 13:10:05 GMT

I couldn't verify if you are able to file electronically this year. As a result, there are two options that can be made.

Mail the return
File your return electronically directly on the NJ website here.

Re: Can Not File NJ return because I have pass through BAIT.

raaa428 — Wed, 26 Mar 2025 14:15:19 GMT

I could not file electronically again this year. I bought Turbo tax so I could file electronically and not have to mail it in. Turbo Tax's response is that the NJ Department of Taxation says you cannot electronically file if you take the BAIT credit. This is not true. It's a glitch in Turbo Tax's system which they refuse to address.

Re: Can Not File NJ return because I have pass through BAIT.

raaa428 — Wed, 26 Mar 2025 14:21:51 GMT

Did you have this problem again this year? I'm in the same situation 2 years in a row.

Re: Can Not File NJ return because I have pass through BAIT.

Sherry2025 — Fri, 23 May 2025 04:43:29 GMT

Hi, I tried to follow your advise. I have the following questions:

1) If NJ mandates efiling, can I mail the return where it is marked on the return (do not mail this form on each page);

2) I tried to efile on NJ website, but there are validation errors also that I can not resolve. Called State technical help, no help is provided. Therefore, I can not efile the return there either.

Re: Cannot File NJ return because I have pass through BAIT.

Retired CPA — Wed, 28 May 2025 20:56:46 GMT

My first year using TurboTax and I'm running into the same problem. This is absolutely a TurboTax issue. I have been efiling my NJ return with a PTE credit for years using professional software without any problems whatsoever.

This is significant enough for me to search for a new tax software company (next year - I just found this problem after entering ALL of my 2024 tax information, so now I'm stuck with TurboTax).

Very disappointed in TurboTax. I expected more from them.

Re: Cannot File NJ return because I have pass through BAIT.

Retired Fool — Wed, 28 May 2025 21:09:18 GMT

let us know what you find. Interested as well

Re: Cannot File NJ return because I have pass through BAIT.

Sherry2025 — Wed, 28 May 2025 21:49:40 GMT

I called Turbo Tax. I was explained the reason why I can not efile not because of Turbo Tax, but because federal Government (not sure if it is IRS) has a law that each person is limited to efile 5 tax returns. If I have to efile more than 5, I have to register as a business, but I do not do this as a business.

I did read about getting another Turbo License to see if that can be an option. Turbo Tax told me they can not comment on that.

I have been emailing NJ State because they created a ticket for me, no response.

No government both federal or state makes it possible to file a return. This is not acceptable.

Sherry

Re: Can Not File NJ return because I have pass through BAIT.

user17573896937 — Tue, 09 Sep 2025 03:49:19 GMT

I have this problem as well and it is very frustrating! Turbotax - please fix this issue or I won't use your software again next year!!

Re: Can Not File NJ return because I have pass through BAIT.

Retired CPA — Tue, 09 Sep 2025 13:25:36 GMT

I feel the same way and I would switch to a new software company in a heartbeat if I can find one that allows user defined attachments. For 2024, I also had to attach a statement to my Federal tax return so I had to "paper" file both tax returns. The NJ went through fine, but the Federal still has not been processed (the IRS received it 6 weeks ago!). Paper filing is so archaic. However, it seems like all of the "individual" tax programs only allow attachments when the software asks for one, as is the case with TurboTax. Before I retired, I used professional CPA software which allows attachments at will.

Re: Can Not File NJ return because I have pass through BAIT.

Sherry2025 — Wed, 10 Sep 2025 03:13:03 GMT

My understanding is the Federal/IRS puts the limitation on Turbo Tax. If taxpayer files more 5 returns electronically, it is considered a professional and the person needs to register with IRS. That is my understanding.

I ended up going to NJ website and manually keyed in amounts. I also had validation errors and it took a few weeks for NJ State to email me the solution.

Re: Can Not File NJ return because I have pass through BAIT.

Retired CPA — Wed, 10 Sep 2025 14:43:11 GMT

That explanation sounds right. Somewhere along the line I read that the IRS is afraid that individual taxpayers will want to attach lots of documents that aren't needed (like receipts for donations, etc.).

We'll just have to live with it. I believe the NJ BAIT credit will work without attaching the PTE K-1, but I'm afraid to try. It just feels better to give NJ the proof up front.

Re: Can Not File NJ return because I have pass through BAIT.

fanfare — Thu, 11 Sep 2025 14:57:18 GMT

I don't see what the 5-Efile limit has to do with this original issue.

I recently found out that TaxAct allows PDF attachments of any sort to an Individual e-File, not just the 1099-B details PDF that TurboTax prompts for in some versions.

Re: Can Not File NJ return because I have pass through BAIT.

Retired CPA — Thu, 11 Sep 2025 15:09:44 GMT

Thanks for that info., I will definitely check out TaxAct. My other issue with TurboTax for 2025 is that I am running Windows 10, so I will have to upgrade to 11 in order to use TurboTax. Not sure what TaxAct requires, that may be an issue with them, as well.

Re: Can Not File NJ return because I have pass through BAIT.

user17573896937 — Thu, 11 Sep 2025 16:12:09 GMT

I agree. I’m only trying to file federal and two states and I’m still running into this issue.

Re: Cannot File NJ return because I have pass through BAIT.

asteinberg001 — Mon, 22 Sep 2025 18:48:43 GMT

I am in same situation ... very disappointed with this e-file limitation when prior years' returns were e-filed with same PTBE tax credit. I will likely move to a diffferent tax prep software solution for TY2025 unless notified of a definitive forthcoming fix.