PTE-160: Underpayment of Estimated Pass-Through Business Alternative Income Tax (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Form PTE-160 determines whether a pass-through entity owes interest on underpaid estimated Pass-Through Business Alternative Income Tax for 2025. It calculates underpayments for four payment periods, checks exceptions, and reports total interest to include on Form PTE-
Who files this form
Pass-through entities use Form PTE-160 to determine whether they owe interest on underpaid estimated Pass-Through Business Alternative Income Tax for tax year 2025.
You may owe interest if your estimated payments did not meet the required level based on 80% of your 2025 tax liability or 100% of your 2024 tax liability. The prior-year rule requires your 2024 PTE-100 to cover a full 12-month period.
Complete Part I to check for an underpayment. Keep these stopping rules in mind:
- If line 3 is less than $400, do not complete the rest of the form.
- If line 15 is zero for all payment periods, you do not owe underpayment interest and do not need to file PTE-160.
- If you meet exception 1 at line 18, do not file PTE-160. The Division of Taxation will verify the amounts.
When it's due
For tax year 2025, line 7 lists estimated-tax installment dates as the 15th day of:
- The fourth month of your tax period.
- The sixth month of your tax period.
- The ninth month of your tax period.
- The first month after your tax period closes.
The text does not state a separate filing deadline for PTE-160. It says to include the form with your return.
What you'll need
Have these forms and records available:
- Your 2025 PTE-100, including the entity name, federal employer ID number, tax on line 2, and amount on line 6.
- Your 2024 PTE-100, including tax on line 2 and, if claiming exception 2, distributive proceeds on line 1.
- Records of estimated tax payments, including amounts and payment dates.
- Distributive proceeds for the periods shown in the worksheets if claiming exception 3 or 4: January 1 through March 31, January 1 through May 31, and January 1 through August 31, 2025.
For exceptions 2, 3, and 4, complete the appropriate worksheets and attach all calculations for each exception claimed.
How to file
If you need to file PTE-160, check the box at line 3 of Form PTE-100 and include PTE-160 with your return.
- Complete Part I to determine whether you have an underpayment for any payment period.
- If you have an underpayment, complete Part II to check whether an exception applies. Attach the required worksheets and calculations for exceptions 2, 3, and 4.
- If no exception applies to a period, calculate the interest for that period. Enter total interest on line 22 of PTE-160 and line 3 of PTE-100.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Working across columns too soon. Complete lines 10 through 16 for one column before starting the next column.
- Continuing past a stopping rule. Stop if line 3 is less than $400, or if every line 9 column is greater than its corresponding line 8 column.
- Filing when the form says not to. Do not file if line 15 is zero for every payment period or if you meet exception 1.
- Leaving out exception calculations. Exceptions 2, 3, and 4 require the appropriate worksheets and attached calculations.
- Using Option 1 for late estimated payments. If your tax year 2025 estimated payments were not paid on time, the instructions require interest to be calculated using the Interest Rate Schedule in Option 2.
- Forgetting the PTE-100 entries. When filing PTE-160, check the box at PTE-100 line 3 and include total interest on that line.
Questions people ask
Can an exception eliminate interest for a payment period?
Yes. You will not owe interest for a period if your payments were made on time and the cumulative amount on line 17 is at least the amount calculated under any of the four exceptions for that period.
What is exception 1?
Exception 1 uses your 2024 tax liability. Your 2024 PTE-100 must have covered a full 12-month period. Line 18 uses cumulative amounts of 25%, 50%, 75%, and 100% of that liability for the four payment periods. If you meet exception 1, do not file PTE-160.
How do exceptions 3 and 4 differ?
Exception 3 annualizes your 2025 distributive proceeds for the periods shown in its worksheet. Exception 4 uses the tax on actual distributive proceeds for the three-, five-, and eight-month periods, then applies 90% of that tax. Both require attached calculations.
How long does interest run under Option 2?
Interest runs from the date the underpayment occurred until it is paid or the original due date of PTE-100, whichever is earlier. It is imposed for each month or part of a month that the underpayment exists.