How to enter New Jersey PTE tax in ProSeries

This article will help you report the elective pass-through entity tax (sometimes called PTE, PTET, PET, or SALT workaround) and the resulting credit.

For New Jersey fiscal filers see: Common questions about New Jersey fiscal returns in ProSeries.

For more PTE resources, check out our dedicated Tax topics page where you'll find a list of all PTE states and the respective content for each.

To claim the credit on an individual return:

1. Open Form NJ-BUS-1.
2. Scroll down to Part II for partnerships, or Part III for S corporations.
3. Enter the Share of Pass-Through Business Alternative Income Tax reported from the Schedule PTE-K1.

To generate the PTE for a partnership:

1. Open the NJ Partnership Information Worksheet.
2. Check the box for Entity is an electing PTE.
3. Check the box indicating the Taxpayer has filed the election to pay the Pass-Through Business Alternative Income Tax. To file the election click here to access the NJ Portal.
4. Click the QuickZoom to open form PTE-100.

The program will calculate the PTE-100 and generate a Schedule PTE-K-1 for the members.

If you are e-filing the state tax return the PTE-100 will not be e-filed with the state return automatically. To include the PTE forms, on the Partnership Information Worksheet part VI make sure New Jersey PTE is also selected for e-file.

To generate the PTE for an S corporation:

1. Open the NJ S Corporation Information Worksheet.
2. Check the box for Entity is an electing PTE.
3. Check the box indicating the Taxpayer has filed the election to pay the Pass-Through Business Alternative Income Tax. To file the election click here to access the NJ Portal.
4. Click the QuickZoom to open form PTE-100.

The program will calculate the PTE-100 and generate a Schedule PTE-K-1 for the members.

If you are e-filing the state tax return the PTE-100 will not be e-filed with the state return automatically. To include the PTE forms, on the S Corporation Information Worksheet part VI make sure New Jersey PTE is also selected for e-file.

To add the Form PTE-100 instructions to the client letter:

1. Open the Federal Partnership or S Corporation return.
2. From the Tools menu, select Letters, then Manage Client Specific Letters.
3. Create new letter if you do not yet have one and select the Standard Client Letter as the Template.
4. Name the letter and select Next.
5. Scroll down to the bottom of the letter, click below [@EndStateText].
6. From the Insert menu select Page Break.
7. On the right side of the screen select the State Paragraph tab.
8. Under New Jersey double click on Form PTE-100 to add the filing instructions to the letter.
9. From the File menu, select Exit Letter. Choose Yes when prompted to save.