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Level 3
February 17, 2022
Question

NJ E Filing Error Message

  • February 17, 2022
  • 63 replies
  • 5 views

I am getting an error message when attempting to file a NJ-1040. It says that "returns with pass through business alternative income tax credits are not eligible for electronic filing"

The return in question has so such credit - is anyone else seeing a similar issue?

Thank you

63 replies

Level 2
February 17, 2022

Yes, needs to be addressed. I'm getting the same error. Very frustrating! Never had an issue like this with TurboTax in all the years I've been using it!

Level 2
February 17, 2022

Frankly TurboTax's response has been less than satisfactory so far.

 

They should refund the cost of the tax service to everyone effected by their own internal glitches and software issues. There is no reason customers should have to spend countless amount of time trying to figure out what is going wrong and why these errors are being received. It's especially aggravating when TT own support staff aren't being properly made aware of this now obvious and widespread issue and are relatively clueless on the phone when you bring this issue to their attention. 

Level 2
February 17, 2022

Received the same error message after update today. Interestingly, my son-in-law had no problems filing his NJ return last week. On the same day he filed his returns, I tried filing mine but it was rejected. I had to wait until today to update then file.

 

spent an hour on the phone with TT support. The rep was clueless. She told me to wait a few days then try again. I asked for the $20 filing fee refund. She sent me a link for a product refund instead.

I’ve used TT for 18 years and never had a problem. Will not use again after this debacle!

Level 2
February 17, 2022

Can you post the product refund link so that we can all apply?

Level 2
February 17, 2022

Having the same issue. Contacted TT who said that it must be an issue with NJ Division of Taxation which I replied that's not possible. I waited until 2/17 (today) for the NJ Schedule DOP to be available, and when I went to file, it said I cannot file electronically because "Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing." I do not own a business, and there is no reported credit. I even checked my NJ State return, and it's line item 62 which is blank. TT needs to resolve this issue, because it's obviously an software error.

Level 2
February 17, 2022

I am getting the message while trying to file my N.J.  state electronically. It says that I have to mail it in  because of a pass thru business alternative income that was entered somewhere . I keep going back over my federal and answering all the questions as no  and it still wont let me.Help Please!

Level 2
February 17, 2022

Same issue...if we all switch to Tax Act, Tax Slayer, etc. will that get TT's attention?  TT needs to spend less on advertising and more on QC and programming.

This is the second year in a row I have had filing issues.  It is time to find another provider.

Level 2
February 17, 2022

I am also having the same problem.

NJ Filing error: Not Eligible for Electronic Filing

Returns with Pass-Through Business Alternative Income Tax Credit are not eligible for electronic filing.

 

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. I reported the rental income on my Federal Tax, Schedule 1, Additional Income, line 5 and 10. Then the rental income is put on my Federal Tax, in my case, 1040-SR Line 8, Other income.

 

I start my NJ Tax return and TT transfers information from my Federal Tax return to my NJ Tax return.

 

  1. I now see that since the rental is considered income, that income is shown on Schedule NJ-BUS 1, as RENT; and Schedule NJ BUS-2, as RENT. IT IS NOT A BUSINESS.
  2. I see that 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.
  3. I see on my NJ-1040, Line 62, Pass-Through Business Alternative Income Tax Credit, that 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. 

I believe it is a TT issue with checks and transfers of data from Federal Tax information into the NJ tax forms.

Also on the first page of my NJ Tax return, I also have the following incorrect information: Federal extension filed, The address above is a foreign address, Your address has changed, Death Certificate is enclosed, Do not want a paper form next year, I authorize the Division of Taxation to discuss my return and enclosures with my preparer, NJ-1040-O enclosed.

Level 2
February 17, 2022

This is happening to people who have no business claims on their return.

 

line 62 on my return is zero. My returns do not have the form 8995.

This error is a glitch with the update that was released today. Let’s hope TT fixes this ASAP

Level 2
February 17, 2022

same!!!! this is so frustrating. I paid to get my taxes (federal, state), the payment went through, but it won't allow me to e-file NJ state return.

Level 2
February 17, 2022

I am getting the same error message for my return as well. Has anyone figured out what to do next?

Level 2
February 17, 2022

it is a bug in the release today   they are looking into it and hopefully have a fix released tomorrow 

Level 2
February 17, 2022

Same problem. 

Level 2
February 17, 2022

Thanks for confirming this issue.  Having the same problem.

Level 2
February 17, 2022

Same issue here - "Not Eligible for Electronic Filing" for NJ state return because of a "Pass-Through Business Alternative Income Tax Credit"

 

However, I don't even claim that credit.