topic Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business in Business & farm

Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

aliciaa0888 — Mon, 09 Mar 2026 05:52:41 GMT

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

ctchas44 — Thu, 17 Feb 2022 13:04:16 GMT

Same here

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

andyb4 — Thu, 17 Feb 2022 13:16:01 GMT

Thanks for posting this question...I have the same situation. The only line item on my return that I found mentioning a "Pass-Through Business Alternative Income Tax Credit" is line 62 of NJ-1040 Pg2 and the dollar amount is blank. Wondering if I'm missing something?

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

JoePic — Thu, 17 Feb 2022 13:44:42 GMT

Same issue, looks like intuit needs to do some more work

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Al...

MayaD — Thu, 17 Feb 2022 13:52:45 GMT

Did you receive a K1?

For taxable years beginning on or after January 1, 2020, pass-through entities may elect to pay a Pass-Through Business Alternative Income Tax due on the sum of each of the member’s share of distributive proceeds. The member(s) may then claim a tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Al...

JoePic — Thu, 17 Feb 2022 13:56:35 GMT

No K1s and is happening on my NJ return and my sons simple return

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

rodsib — Thu, 17 Feb 2022 14:05:15 GMT

I am getting the same error and I just spent 40 minutes on the phone with Intuit Support. No resolution, but I opened a case with them. I have no K-1's and I don't own a business. Teh support person could not see why I would get this error either. I am guessing that there is a glitch in the system that needs to be addressed. Also interesting to note that this is the first day that NJ Sch DOP was made available in the system; I don't know if it is related, but I would bet it is.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

Jan911 — Thu, 17 Feb 2022 15:26:57 GMT

I am having same issues. I did not receive any K-1's and don't have any Pass-Through Business Alternative Income Tax Credit. I agree that TT must have broken this part of the code when they updated for the NJ Sched DOP. Hope they fix it soon - loosing LOTS of faith in TT this year. So many glitches!!!

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

tconroy — Thu, 17 Feb 2022 16:05:48 GMT

Also having this exact same problem:

- W2 employee

- Don't own an income-generating business

- Work from home 100% of the year

Can't understand why I'm getting this "Pass-Through Business Alternative Income Tax Credit". Can I opt out of the credit? I would rather file online.

Does anyone know if this has anything to do with holding equity in a public company? That's the only significant change to my tax situation this year vs last year, and last year I did not need to mail my forms.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

Accountworx — Thu, 17 Feb 2022 16:06:15 GMT

Same here! What's the work around or do we have to wait for another update?

Thanks!!

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

gardenhand — Thu, 17 Feb 2022 16:09:52 GMT

I wish I would have seen this before spending the better part of my morning trying to figure out what was wrong. Please fix this issue so I can file. I dont want to paper file.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

rodsib — Thu, 17 Feb 2022 16:13:26 GMT

Replying to TConroy - If that is the case, anyone who owns stock would be unable to e-file in NJ. That seems unlikely to me.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Al...

tconroy — Thu, 17 Feb 2022 16:26:29 GMT

Hi @MayaD , since you are the only expert to respond to this post - can you help confirm for us if this is indeed a glitch in TurboTax related to the recently-released NJ Sch DOP form? Or something else?

Seems a lot of people are being told they need to file through the mail because of this tax credit, but as far as I can tell people in this thread are not business owners and/or receiving K1's.

Looking at the instructions for the NJ-1040 form online, page 41 outlines this credit:

> Line 62 – Pass-Through Business Alternative Income Tax Credit

Enter your share of tax from Schedule NJ-BUS-1, Part II, line 5; Schedule NJ-BUS-1, Part III, line 5; or from Schedule NJK-1 received from an estate or trust. Enclose Schedule NJ-BUS-1 and a copy of your Schedule PTE-K-1 or Schedule NJK-1 with your return.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Al...

tconroy — Thu, 17 Feb 2022 16:43:27 GMT

I started a similar thread here.

Hopefully we can get some answers.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

Colombof1 — Thu, 17 Feb 2022 16:59:01 GMT

Following - I’m having the same issue as an NJ resident and I have no K1 form. I’m a W-2 earner.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

H4473 — Thu, 17 Feb 2022 17:05:24 GMT

This is obviously a screw up by Turbo Tax. Tried my daughters tax return who is at college and has an $11 refund also gets the same message and I am sure she does not have this credit.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

ethosian — Thu, 17 Feb 2022 17:16:56 GMT

Spent an hour with support, no resolution. Told me to wait a few days.

All lines are blank for Pass-Through Business Alternative Income Tax Credit on my forms when I print.

No Schedule K-1s.

NJ-1040, Line 62 (Blank)

NJ1040-ES, Part V, Line 20 (Blank)

NJ1040-ES, Part VII, Line 25 (Blank)

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

Anonymous — Thu, 17 Feb 2022 17:18:41 GMT

Their rep just told me essentially the same thing - wait til Sunday/Monday and try again. Apparently this is happening to about 1/3 of states & they're hearing from accountants that there's some kind of "delay". Didn't fully understand.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Al...

hjsdc — Thu, 17 Feb 2022 17:29:08 GMT

There's nothing worse than an "expert" who answers without reading the question.

Re: Why does my NJ return tell me I can't file electronically because of Pass-Through Business Alternative Income Tax Credit. I don't own a business

JoePic — Thu, 17 Feb 2022 17:38:35 GMT

It would be helpful if a an Intuit technician could respond and provide the issue and when to expect the situation to be rectified. Also, if there is a work around that would be helpful.