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How to enter New Jersey PTE tax in ProConnect Tax

by Intuit Updated 4 months ago

This article will help you report the New Jersey passthrough business alternative income tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in ProConnect Tax.

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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 2023 PTE-100 Payments section.
  5. Enter the amount and date paid.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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 2023 New Jersey Pass-Through Entity Estimates (PTE-150) section.
  5. Enter the amount and date paid.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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