I am trying to file my state tax returns and I am not eligible for electronic filing because of this Returns with Pass-Through Business Alternative Income Tax Credit. Nothing really changed from last year for where I worked and all my savings accounts are the same. I did withdraw money from a brokerage account though. Does this have anything to do with a 1099? I work in Philadelphia and live in New Jersey.
February 17, 2022 12:04 AM last updated February 17, 2022 12:04 AM Connect with an expert
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11 RepliesI have the same issue.
February 17, 2022 4:32 AM Returning MemberI have the same issue with this message yet I do not have any pass through business alternative income tax credit. I do not understand why I am having this issue.
February 17, 2022 6:26 AMThis sounds like a glitch on Turbo Tax end. I do have a brokerage account through an LLC but they only send me 1099 forms. I dont think this applies to Pass-Through Business tax credit.
I do have a tax credit for taxes paid to other states, that being Philly but again that doesn't sound like this issue here.
February 17, 2022 6:45 AM Expert Alumni@FalconX - This could very well be a system hang-up but it could also be something in your return is triggering this form. In any event the main issue is that this form has not been finalized and is needed for processing your return. Below is some information about this new NJ document. There may be other issues on the return that require passing through this document. I suggest you wait until the return is able to e-file. See next paragraph for more information.
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:
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.
If you still feel that this does not apply to you, we can try to delete the form :
Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:
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