That BAIT Tax sure sounded like a can of worms. So I looked it up and it seems that New Jersey has a new way to tax "Pass Through Entities" with a "Business Alternatives Income Tax." Makes me glad I live in a state where I can pump my own gas. I'm sure the OP knows more about it than I do, and I don't use Lacerte so I don't know how they are handling it. However, for others here who may be interested, here is the state's FAQ: