The state of New Jersey recently announced on their website that due to technically difficulties, the due date for the PTE Election, PTE-200-T Extension of Time to File, and Revocation forms has been extended to June 15, 2021. New Jersey pass-through business owners now have until June 15th to file and pay any NJ BAIT tax due for tax year 2020. They also have the option to complete the revocation form to opt out of their original NJ BAIT tax election. If the taxpayer opts out, they will receive any money paid into the NJ BAIT back as a refund.
For tax year 2021, second quarter NJ BAIT estimated tax payments are due by June 15th. Taxpayers will need to complete an election form for tax year 2021 and for each upcoming year they choose to opt into the program.
On April 19, 2021, Governor Cuomo of New York also signed legislation which included the creation of a pass-through entity tax program. The New York PTE program will be in effect for tax year 2021 and due to the timing of the legislation, elections to opt into the program will be due by October 15, 2021. This new legislation will allow New York taxpayers to pay New York state tax at the entity level and correspondingly take a federal tax deduction. It will also allow for New York non-resident partners to take credit for NJ BAIT tax paid on their behalf, as a credit, against their New York personal tax liability. This new legislation is a big win for New York business pass-through owners as New York implements a similar program to New Jersey’s BAIT.
Kevin Kanouse, CPA
kkanouse@ljcpa.com