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2023 PTE-100
Pass-Through Business Alternative Income Tax Return Instructions
General Information
Pass-through entities that led an election to pay the
Pass-Through Business Alternative Income Tax must le
Form PTE-100 and pay the tax due. They must also pro-
vide Schedule PTE-K-1 to each member reporting the
amount of the member’s share of distributive proceeds
and Pass-Through Business Alternative Income Tax.
Members will include a copy of the Schedule PTE-K-1
with their New Jersey Gross Income Tax or Corporation
Business Tax return to claim credit for their share of the
tax paid. See the instructions for the appropriate return
for more information on how to claim the credit.
Pass-through entities that elect to pay the Pass-Through
Business Alternative Income Tax shall make estimated
payments on or before the 15th day of each of the
fourth, sixth, and ninth months of the tax year and the
rst month of the following tax year.
Pass-through entities must le an election to pay the
Pass-Through Business Alternative Income Tax before
ling Form PTE-100. Elections must be made electroni-
cally prior to the original due date of the PTE-100. If an
election is not made prior to the original due date of
the return, Form PTE-100 will not be accepted.
Who Must File
Every pass-through entity that has led an election to
pay the Pass-Through Business Alternative Income Tax
must le Form PTE-100.
What to File
The following forms and statements must be included
with the PTE-100:
• Schedule PTE-K-1 for every member;
• Schedule PTE-160, Underpayment of Estimated
Pass-Through Business Alternative Income Tax, must
be included if the entity calculated an interest charge
on an underpayment of installment payments or an
exception to the imposition of interest.
How to File
Form PTE-100 and all related forms and payments must
be led electronically. Visit our website or check with
your software provider to see if they support any or all of
these lings. Visit the New Jersey Division of Revenue
and Enterprise Services’ website or email the Division of
Revenue and Enterprise Services at e-GovServices@
treas.nj.gov. Paper forms mailed to the Division of
Taxation will not be accepted.
When to File
Form PTE-100 for calendar year 2023 is due March 15,
2024. Fiscal year returns are due the 15th day of the
third month after the end of the tax year.
Any short period return must be led by the due date of
the federal Form 1065 or Form 1120-S. If Form PTE-100
is not yet available at that time, the short period return
must be led when the form becomes available.
Extension of Time to File
Taxpayers can request a six-month extension of time to
le by submitting Form PTE-200-T, Pass-Through Busi-
ness Alternative Income Tax Application for Extension of
Time to File Form PTE-100, on or before the original due
date of the return.
There is no extension of time to pay tax due. Penalties
and interest are imposed whenever tax is paid after the
original due date.
A six-month extension of time to le your PTE-100 may
be granted if at least 80% of the total tax reported on
your PTE-100 when led is paid by the original due date.
Taxpayers will be notied only if the extension is denied,
but not until after the PTE-100 is actually led.
Denitions
Pass-through entity means a partnership, an S corpora-
tion, or a limited liability company, with at least one mem-
ber who is liable for tax on distributive proceeds under
the New Jersey Gross Income Tax Act.
Partnership means a syndicate, group, pool, joint ven-
ture, and any other unincorporated organization through
or by means of which any business, nancial operation,
or venture is carried on in New Jersey.
New Jersey S Corporation means a federal S corpo-
ration that is also treated as an S corporation for New
Jersey purposes and les Form CBT-100S.
Member means a shareholder of an S corporation; a
partner in a general, limited, or limited liability partner-
ship; or a member of a limited liability company.
Hedge Fund Status is met for New Jersey tax purposes
if the investment entity’s only activity is the purchase,
holding, or sale of intangible personal property, such as
commodities or securities, and such intangible personal
property is not held for sale to customers as dened
at N.J.S.A. 54A:5-8c. An entity that qualies for hedge
fund status in one year may not meet the requirements
every year. The entity must evaluate its situation on a
yearly basis. The entity, not the member, must make the
determination.
Accounting Method
A pass-through entity’s accounting method(s) used for
the PTE-100 must be the same as the accounting meth-
ods(s) used for federal purposes.
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Accounting Periods
The 2023 PTE-100 should be used for:
• Calendar Year 2023;
• A partnership with a scal year that began in 2023;
• An S corporation with a scal year that began in 2023.
(Tax year for Form PTE-100 may be dierent from
Form CBT-100S.)
If ling for a scal year or a short tax year, enter at the
top of the PTE-100 the month, day, and year the tax year
began, and the month, day, and year it ended. The tax
year for New Jersey purposes must be the same as the
tax year for federal income tax purposes.
Rounding O to Whole Dollars
Money items can be shown in whole dollars (eliminate
amounts under 50 cents; enter amounts over 50 cents
as the next higher dollar amount).
Signatures
The return must be signed by a general partner, lim-
ited liability company member, if applicable, a receiver,
trustee in bankruptcy, or assignee, or an ocer of the
corporation who is authorized to attest to the truth of the
statements contained in the return. The fact that an indi-
vidual’s name is signed on the return is prima facie evi-
dence that the individual is authorized to sign the return
on behalf of the entity.
Tax preparers. Anyone who prepares the return for a
fee must sign the return as a “Paid Preparer” and must
enter their Social Security number or federal practitioner
tax identication number. The company or corporation
name and federal employer identication number must
be included if applicable. If someone prepares the return
at no charge, the paid preparer’s area does not need to
be completed. A tax preparer who fails to sign the return
or provide a correct tax identication number may incur a
$25 penalty for each omission.
Time Limits for Assessing Additional Tax
Pass-through entities that elect to pay the Pass-Through
Business Alternative Income Tax are subject to the pro-
visions of the Gross Income Tax Act, which has a three-
year statute of limitations (time allowed by law) for the
Division of Taxation to send a bill. The Division generally
has three years from the date the entity led its PTE-
100 or the original due date of the return, whichever is
later, to send the entity a bill for additional tax. There is
no time limit if the entity did not le a PTE-100, or if the
entity led a false or fraudulent return with the intent
to evade tax. The time limit may be extended in cer-
tain circumstances.
Penalties and Interest
Late Filing Penalty. 5% per month (or part of a month)
up to a maximum of 25% of the outstanding tax liabil-
ity will be imposed when a return is led after the due
date or extended due date. A penalty of $100 for each
month or part of a month the return is delinquent may be
imposed.
Late Payment Penalty. 5% of the outstanding tax bal-
ance may be imposed.
Interest. 3% above the prime rate for every month or
part of a month the tax is unpaid, compounded annually.
At the end of each calendar year, any tax, penalties,
and interest remaining due (unpaid) will become part of
the balance on which interest is charged. The interest
rates assessed by the Division of Taxation are published
online.
Collection Fees. In addition, if the tax bill is sent to our
collection agency, a referral cost recovery fee of 11% of
any tax, penalty, and interest due will be added to the
liability in accordance with N.J.S.A. 54:49-12.3. If a cer-
ticate of debt is issued for the outstanding liability, a fee
for the cost of collection of the tax may also be imposed.
Underpayment of Estimated Tax. Failure to make es-
timated payments, or underpaying estimates, will result
in interest on any amount underpaid. To calculate the in-
terest due, or to claim an exception for any of the install-
ment payments, complete Form PTE-160 and include
with Form PTE-100.
Amended Returns
To amend PTE-100 returns, submit a PTE-100 for the
appropriate tax year and check the box to indicate that it
is an amended return. Amended returns must be submit-
ted electronically.
Consolidated Returns
Consolidated returns (pursuant to N.J.S.A. 54A:12-3(c)
(2)) are optional. A group of pass-through entities under
common ownership by an individual, estate, or trust, or
a group of related individuals, estates, or trusts, may le
a consolidated Pass-Through Business Alternative In-
come Tax return. If a group decides to le a consolidated
return, they must choose one entity to le the return and
that entity will be known as the designated entity.
Pass-through entities are under common ownership, if
the individual, estate, or trust, or a group of related in-
dividuals, estates, or trusts, own more than 50% of the
direct or indirect voting control of each pass-through
entity. Section 318 of the federal Internal Revenue Code,
26 U.S.C. s.318, applies for determining voting control.
See N.J.S.A. 54A:12-3(c)(2).
Note: References to consolidated returns in these in-
structions refer to Pass-Through Business Alternative
Income Tax returns and are not to be confused with
mandatory unitary combined returns required for Corpo-
ration Business Tax purposes.
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Member Entity. Each member of a consolidated return
must le its own Form PTE-100. A member of a consol-
idated return must check the Member of Consolidated
Return box and enter the name and federal employer
identication number (FEIN) of the designated entity that
will le the consolidated return. The member of the con-
solidated return must complete only columns A, B, and C
of the Members Directory. Do not complete lines 1–10 of
Form PTE-100, column D of the Members Directory, the
Consolidated Members Directory, or Schedule PTE-K-1.
You must provide a copy of your Members Directory to
the designated entity that was chosen to le the consoli-
dated return. Also provide the designated entity with the
amount of any payments made for your pass-through
entity. The designated entity will complete the tax calcu-
lation on lines 1–10 of Form PTE-100, the Consolidated
Members Directory, and the PTE-K-1s. Any payments
made for your pass-through entity will be transferred to
the designated entity and will be claimed on the consoli-
dated return.
Designated Entity. The designated entity ling a con-
solidated return on behalf of the group must check the
Designated Consolidated Return box to indicate it is a
consolidated return and complete as follows:
Lines 1–10: Enter the total of each member’s share of
distributive proceeds from column D of the Consolidated
Members Directory. This is the total for all members of all
entities that are part of the consolidated return.
Members Directory: Complete columns A, B, and C
including only the members of the designated entity.
Do not complete column D. Each member entity must
le its own Form PTE-100 providing its own members’
information.
Consolidated Members Directory: Enter all members of
all entities that are part of the consolidated return .
Schedule PTE-K-1: Complete a Schedule PTE-K-1 for
each member of every entity that is part of the consoli-
dated return.
Fraudulent Returns
Any person who deliberately fails to le a return, les
a fraudulent return, or attempts to evade the tax in any
way may be liable for a penalty up to $7,500 or imprison-
ment for three to ve years, or both.
Forms and Assistance
To get New Jersey tax forms, visit our website.
Assistance from a Division representative is available
by contacting the Division’s Customer Service Center at
(609) 292-6400.
Electronic Filing Assistance
For electronic ling assistance:
• Call the Division of Revenue and Enterprise Services’
Call Center at (609) 292-9292.
• Download the needed formats from the New Jersey
Division of Revenue and Enterprise Services’ website.
Line-by-Line Instructions
Reporting Period
If you are reporting for a period other than Calendar
Year 2023, enter the beginning and ending dates of your
scal year. The beginning date cannot be earlier than
January 1, 2023.
Pass-Through Entity Identication
Enter the pass-through entity’s federal employer identi-
cation number (FEIN), name, and address.
Check the box that indicates the form led by the pass-
through entity:
• Form NJ-1065, partnership return;
• Form CBT-100S, S corporation return.
Check the appropriate boxes to indicate if the pass-
through entity:
• Is a General Partnership;
• Is a Limited Partnership;
• Is a Limited Liability Company;
• Is a Limited Liability Partnership;
• Is a New Jersey S corporation;
• Meets hedge fund status.
Return Type
Check the box to indicate if the return is an amended
return.
Consolidated return members and designated entities
check the appropriate box. Members must also include
the name and FEIN of the designated entity that is ling
the consolidated return on which they are included.
Pass-Through Business Alternative Income
Tax Calculation
This section must be completed by all pass-through enti-
ties that are not members of a consolidated return. Con-
solidated return members do not complete this section.
Designated consolidated return entities must complete
this section using information from their Consolidated
Members Directory.
Line 1 – Distributive Proceeds
Enter the total of each member’s share of distributive
proceeds from column C of the Members Directory.
Designated consolidated return entities enter the total of
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each member’s share of distributive proceeds from col-
umn D of the Consolidated Members Directory.
Line 2 – Pass-Through Business Alternative
Income Tax
Use the chart below to calculate the amount of tax and
enter the tax on line 2.
Line 3 – Penalty and Interest
Include any penalties and interest. See the Penalties
and Interest section for information.
If completing Form PTE-160, check the box and enter
the amount calculated on Form PTE-160 in the space
provided in addition to including the amount on line 3.
Include Form PTE-160 with the PTE-100.
If entering penalty and interest other than interest on
the underpayment of estimated tax, complete lines 5 and
6 before line 3. Subtract lines 5 and 6 from line 2 and
use the result to calculate the amount of penalty and in-
terest to include here.
Line 4 – Total Due
Add line 2 and line 3 and enter the total.
Line 5 – Payments
Include on this line:
• Estimated Pass-Through Business Alternative Income
Tax payments made for 2023;
• Amounts paid with an application for extension of time
to le;
• Any amount carried forward from your 2022 PTE-100.
Designated consolidated return entities include, from
the Consolidated Members Directory, the total 2023 es-
timated tax payments, amount paid with an application
for extension of time to le made by each entity included
in the consolidated return, as well as any amount carried
forward from the 2022 PTE-100.
Line 6 – Pass-Through Business Alternative Income
Tax Credit
• NJ-1065 lers – If you indicate on Form NJ-1065,
Schedule A, Part II, line 3, that the Pass-Through
Business Alternative Income Tax will be applied to
your PTE-100, enter the amount from Schedule A,
Part II, line 2, column J.
• CBT-100S lers – If you indicate on Form 329,
Part II, line 13 that the Share of Pass-Through Busi-
ness Alternative Income Tax will be applied to your
PTE-100, enter the amount from Form 329, Part II,
line 13.
Amount Due or Overpayment – Lines 7–10
Compare line 4 with the total of lines 5 and 6.
• If the total of lines 5 and 6 is less than line 4, you have
a balance due. Complete line 7.
• If the total of lines 5 and 6 is more than line 4, you
have an overpayment. Complete lines 8–10.
Line 7 – Total balance due
Subtract lines 5 and 6 from line 4.
Line 8 – Overpayment
Subtract line 4 from the total of lines 5 and 6.
Line 9 – Credit to 2024
Enter the amount of the overpayment shown on line 8
that you want forwarded to your 2024 PTE-100. Pass-
through entities must le a 2024 Pass-Through Busi-
ness Alternative Income Tax election before applying
a credit to 2024.
Line 10 – Refund
Subtract line 9 from line 8 and enter the result.
Members Directory
The Members Directory must be completed by all pass-
through entities using their own entity’s information.
List the members in order of their ownership interest in
the pass-through entity, beginning with the member who
holds the largest share.
Column A: Use the following codes to identify the mem-
ber’s residency status and type:
RI – New Jersey Resident Individual
NR – Nonresident Individual
PI – Part-Year Resident Individual
RP – New Jersey Resident Partnership
NP – Nonresident Partnership
RT – New Jersey Resident Trust
NT – Nonresident Trust
RE – New Jersey Resident Estate
NE – Nonresident Estate
RC – New Jersey Corporation
FC – Non-New Jersey Corporation
RO – New Jersey Resident Other
NO – Nonresident Other
If Distributive Proceeds (line 1) is:
Enter line 1 Multiply line 1 by: Subtract
Pass-Through
Business Alternative
Income Tax
Over But not over
$ 0 $ 250,000 __________ X .05675 = __________ – $ 0 = _________
$ 250,000 $ 1,000,000 __________ X .0652 = __________ – $ 2,112.50 = _________
$ 1,000,000 and over __________ X .109 = __________ – $ 45,912.50 = _________
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Column B: Enter each member’s Social Security num-
ber (SSN) for individuals or FEIN for entities other than
individuals, as well as each member’s name and ad-
dress. For individuals, the address must be that of the
person’s principal residence. If the member is an entity
other than an individual, enter the member’s business
name. For corporations, enter the address of commercial
domicile. Enter each member’s ownership percentage
as of the close of the tax year. If a member disposed of
all or part of an ownership interest during the year, list
the member by the ownership percentage before the
disposition.
Enter a “Y” if this is the nal Schedule PTE-K-1 for the
member.
Column C: The member’s share of distributive proceeds
is based on the information reported on your entity’s
Form NJ-1065 or CBT-100S.
• NJ-1065 Filers. Enter the total of lines 4, 5, and 6 from
Schedule NJK-1, Part II, column A “Total Distribution,”
for each resident individual, trust, or estate and/or
part-year resident individual partner. Enter the total of
lines 4 and 6 from Schedule NJK-1, Part II, column B,
“New Jersey Source Amounts,” for all other partners
in the pass-through entity other than for a nonresident
individual, trust, or estate whose partnership checked
the hedge fund box.
• CBT-100S Filers. Enter the total of lines 1 and 4 from
Schedule NJ-K-1, Part II for each shareholder.
Total the amounts in column C. Also enter the total on
line 1 of the PTE-100. Consolidated return members and
designated entities do not enter the total of column C on
line 1.
A pass-through entity must calculate their Pass-Through
Business Alternative Income Tax on line 2 of Form
PTE-100 before completing column D.
Column D: For each member with a positive share of
distributive proceeds in column C, divide the member’s
share by the total distributive proceeds on line 1. Mul-
tiply this percentage by the Pass-Through Business
Alternative Income Tax on line 2 and enter the result in
column D. Consolidated return members and designated
entities do not complete column D.
Note: If there are any negative shares of distributive pro-
ceeds in column C, those amounts must be added back
to the amount on line 1 for the purpose of calculating the
member’s share of tax for column D.
If an amended return is led and the member’s share
of tax is less than the amount reported on the original
Members Directory, report the amount listed on the origi-
nal Members Directory. Do not report the lesser amount,
since the member is entitled to claim credit for the origi-
nally reported amount.
Consolidated Members Directory
The Consolidated Members Directory is only completed
by a designated entity ling a consolidated return. Con-
solidated return members do not complete this section.
List all the members of each entity that is part of the
consolidated return. List the members in order of their
ownership interest in the pass-through entity of which
they’re a member, beginning with the member who holds
the largest share.
Column A: Use the codes provided in the instructions
for column A of the Members Directory.
Column B: For each member of the pass-through en-
tities that are part of the consolidated return, enter the
information as shown on the pass-through entity’s Mem-
bers Directory.
Column C: Enter the name and FEIN of each pass-
through entity that is part of the consolidated return. En-
ter the designated entity rst in column C.
Enter each member’s share of distributive proceeds from
column C of the entity’s Members Directory. Enter the
amount in the column for the appropriate entity(ies).
Column D: Total the amounts in column C for each
member and enter the result in column D. Then total the
amounts in column D. Enter this total on line 1 of the
PTE-100.
Calculate the Pass-Through Business Alternative In-
come Tax on line 2 of form PTE-100 before complet-
ing column E.
Column E: For each member with a positive share of
distributive proceeds in column D, divide the member’s
share by the total distributive proceeds on line 1. Mul-
tiply this percentage by the Pass-Through Business
Alternative Income Tax on line 2 and enter the result in
column E.
Note: If there are any negative shares of distributive pro-
ceeds in column D, those amounts must be added back
to the amount on line 1 for the purpose of calculating the
member’s share of tax for column E.
If an amended return is led and the member’s share of
tax is less than the amount reported on the original Con-
solidated Members Directory, report the amount listed
on the original Consolidated Members Directory. Do not
report the lesser amount, since the member is entitled to
claim credit for the originally reported amount.
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Enter the amount of any estimated payments, any
amount paid with an application for extension of time
to le, and any amount carried forward from a 2022
PTE-100 by each entity that is included in the consoli-
dated return. Enter the total and include on line 5 of the
PTE-100.
Schedule PTE-K-1
Schedule PTE-K-1 provides each member with their
share of distributive proceeds and Pass-Through Busi-
ness Alternative Income Tax. A Schedule PTE-K-1 must
be completed for every member that was a member of
the pass-through entity at any time during the year.
Members must be furnished with a copy of their Sched-
ule PTE-K-1 on or before the due date of the return
(PTE-100). If interest is held by a nominee on behalf of
another person, the pass-through entity is required to
furnish Schedule PTE-K-1 to the nominee.
Designated consolidated return entities must complete
a Schedule PTE-K-1 for each member of every entity
that is part of the consolidated return. Consolidated re-
turn members do not complete PTE-K-1s for their own
members.
A copy of all PTE-K-1s must be retained by the pass-
through entity as part of the entity’s records.
Name and Address
Enter the name and address of both the member and the
pass-through entity. Enter the FEIN of the pass-through
entity and, if the particular member is an entity other
than an individual, enter the FEIN of the member as well.
If the member is a person, enter their Social Security
number. If the member is an Individual Retirement Ar-
rangement (IRA), enter the identication number of the
custodian of the IRA, not the Social Security number of
the person for whom the IRA is maintained. If the mem-
ber is a disregarded entity (DE), enter the FEIN, name,
and address of the benecial owner of the DE.
If spouses each had an interest in the pass-through
entity, prepare a separate Schedule PTE-K-1 for each
spouse. If spouses held an interest together as one
member, prepare one Schedule PTE-K-1.
For a consolidated return, the designated entity is the
pass-through entity. Enter the required information and
check the box to indicate the pass-through entity is the
designated entity of a consolidated return.
Disregarded Entity
If the member is a DE, such as a single member LLC
that did not elect to be treated as a corporation, check
the box and enter the FEIN and name of the DE.
Distributive Proceeds
Enter the member’s share of distributive proceeds re-
ported in column C of the Members Directory. Desig-
nated consolidated return entities enter the member’s
total share of distributive proceeds from column D of the
Consolidated Members Directory.
Pass-Through Business Alternative
Income Tax
Enter the member’s share of Pass-Through Business Al-
ternative Income Tax reported in column D of the Mem-
bers Directory. Designated consolidated return entities
enter the member’s share of Pass-Through Business Al-
ternative Income Tax from column E of the Consolidated
Members Directory.
If an amended Schedule PTE-K-1 is led, do not report
less than the amount reported on the original Schedule
PTE-K-1.
Exempt Corporations That are Members. An exempt
corporate member that is a corporation exempt from
tax pursuant N.J.S.A. 54:10A-3 can claim a refund for
the amount of tax paid by the pass-through entity on its
share of distributive proceeds by ling form A-3730 with
an attached copy of its schedule PTE-K-1.
