topic Why does my tax return say i have pass through business alternative income tax credit? i do not own a company or LLC in Business & farm

Why does my tax return say i have pass through business alternative income tax credit? i do not own a company or LLC

arthurp1976 — Mon, 09 Mar 2026 05:46:28 GMT

Re: Why does my tax return say i have pass through business alternative income tax credit?i do not own a company or LLC

rdawud — Fri, 18 Feb 2022 01:35:58 GMT

I have the same issue, I hope we can find resolution.

Re: Why does my tax return say i have pass through business alternative income tax credit? i do n...

MayaD — Fri, 18 Feb 2022 14:42:20 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.

Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations