How to enter New Jersey PTE tax in Lacerte

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

To claim the credit on an individual return:

1. Go to Screen 20, Passthrough K-1s.
2. Select the Partnership or S-Corporation K-1 that reported a credit.
3. Scroll down to the New Jersey Information section.
4. Enter the amount in Share of Business Alternative Income Tax.

The credit will flow to form NJ-1040, line 62. Form NJ-BUS-1 will report all of the sources for the credit.

To generate the PTE for a Partnership:

1. Check the box on Screen 1, Client Information for New Jersey PTE.
2. The program will calculate the Pass-Through Business Alternative Income Tax per the instructions for Line 2 of the Form PTE-100.
3. For extensions, use Screen 6, Automatic Extensions under the New Jersey Extension (PTE-200-T) section.
4. To enter Estimated payments made or make adjustments to next years estimated payments use Screen 42.081 Estimated Tax and the PTE-100 sections.

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

To generate the PTE for an S-Corporation:

1. Check the box on Screen 1, Client Information for New Jersey PTE.
2. The program will calculate the Pass-Through Business Alternative Income Tax per the instructions for Line 2 of the Form PTE-100.
3. For extensions, use Screen 12, Automatic Extensions under the New Jersey Extension (PTE-200-T) section.

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