How to enter New Jersey PTE tax in ProConnect Tax

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 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.

Table of contents:

To claim the credit on an individual return:

1. On the left-side menu, select Income.
2. Click on Passthrough K-1's.
3. Select the Partnership Info or S-Corp Info screen, depending on the type of K-1.
4. From the Schedule K-1 sections along the top, select State & Local.
5. Scroll down to the New Jersey Information section.
6. Enter the amount in Share of Business Alternative Income Tax.

The credit will flow to form NJ-1040, line 63. Form NJ-BUS-1 will report all of the sources for the credit.

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To generate the PTE for a partnership:

1. Go to the Profile tab.
2. Check the box for New Jersey PTE under the Select for E-file.

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

To enter PTE-100 payments already made:

1. On the left-side menu, select State & Local.
2. Click on Estimates.
3. Select the NJ Estimates screen.
4. Scroll down to the New Jersey 2024 PTE-100 Payments section.
5. Enter the amount and date paid.

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To make a PTE payment with an e-filed extension:

1. Go to the Profile tab.
2. Make sure both New Jersey PTE and New Jersey PTE Extension are checked for e-file here.
3. Go to the Input Return tab.
4. On the left-side menu, select Miscellaneous Information.
5. Enter the client's Bank Information.
6. Select the NJ section at the top of the input.
7. Under PTE-200-T, check the box for Electronic payment of balance due.
8. On the left-side menu, select Automatic Extension (7004).
9. Click on the State & Local section at the top of the input.
10. Check the box to Print extension. You can also override the Payment amount here if needed.

Review and print the NJ e-file Payment (PTE-200-T) and PTE-200-T forms the program produces. Verify these are accurate and keep them for your records before sending the extension.

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To generate the PTE for an S corporation:

1. Go to the Profile tab.
2. Check the box for New Jersey PTE under the Select for E-file.

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

To enter PTE payments already made:

1. On the left-side menu, select Payments, Penalties & Extensions.
2. Click on the Estimated Tax screen.
3. Select the Other State & Local section along the top of the input.
4. Scroll down to the 2024 New Jersey Pass-Through Entity Estimates (PTE-150) section.
5. Enter the amount and date paid.

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To make a PTE payment with an e-filed extension:

1. Go to the Profile tab.
2. Make sure both New Jersey PTE and New Jersey PTE Extension are checked for e-file here.
3. Go to the Input Return tab.
4. On the left-side menu, select Miscellaneous Information.
5. Enter the client's Bank Information.
6. Select the NJ section at the top of the input.
7. Under PTE-200-T Extension, check the box for Electronic payment of balance due.
8. On the left-side menu, select Payments, Penalties & Extensions.
9. Click on Extension of Time to File (7004).
10. Click on the State & Local section at the top of the input.
11. Check the box to Print extension. You can also override the Payment amount here if needed.

Review and print the NJ e-file Payment (PTE-200-T) and PTE-200-T forms the program produces. Verify these are accurate and keep them for your records before sending the extension.

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