If you received a New Jersey Schedule NJK-1 from a partnership or S corporation, use this section to enter the information reported by the pass-through entity.
A pass-through entity does not generally pay New Jersey Gross Income Tax on behalf of the owners. Instead, income, losses, deductions, and credits pass through to the partners or shareholders and are reported on their individual New Jersey returns.
Program Entry
New Jersey Return → NJ Schedule K-1
What Is a New Jersey Schedule NJK-1?
A New Jersey Schedule NJK-1 is issued by a pass-through entity to report an owner's share of:
- Income
- Losses
- Deductions
- Credits
- New Jersey tax payments
- Other New Jersey tax items
The information reported on the NJK-1 may differ from the amounts shown on the federal Schedule K-1 because New Jersey tax rules do not always follow federal tax law.
If you received a New Jersey Schedule NJK-1, enter the information using the applicable section below.
NJ-1065 K-1
What Is an NJ-1065 K-1?
The NJ-1065 Schedule NJK-1 is issued by a partnership to each partner.
The K-1 reports the partner's share of partnership activity for New Jersey tax purposes.
Examples of partnership entities include:
- General partnerships
- Limited partnerships
- Limited liability partnerships (LLPs)
- Certain multi-member LLCs taxed as partnerships
Information Typically Reported on an NJ-1065 K-1
The NJ-1065 K-1 may include:
- Partnership income
- Partnership losses
- Guaranteed payments
- Interest income
- Dividend income
- Rental income
- Partnership deductions
- New Jersey tax credits
- New Jersey tax paid on behalf of the partner
Enter the information exactly as shown on the New Jersey Schedule NJK-1 received from the partnership.
Why Is This Information Important?
The information reported on the NJ-1065 K-1 is used to determine your share of the partnership's New Jersey income and may affect:
- New Jersey taxable income
- New Jersey credits
- New Jersey tax payments
- New Jersey balance due or refund
NJ-1120S K-1
What Is an NJ-1120S K-1?
The NJ-1120S Schedule NJK-1 is issued by a New Jersey S Corporation to each shareholder.
The K-1 reports the shareholder's share of the corporation's New Jersey tax items.
Examples of S corporation income include:
- Ordinary business income
- Rental income
- Interest income
- Dividend income
- Other pass-through income items
Information Typically Reported on an NJ-1120S K-1
The NJ-1120S K-1 may include:
- Shareholder income
- Shareholder losses
- New Jersey source income
- Tax credits
- New Jersey tax paid on behalf of the shareholder
- Other New Jersey adjustments
Enter the information exactly as shown on the New Jersey Schedule NJK-1 received from the S corporation.
Why Is This Information Important?
The information from the NJ-1120S K-1 is used to determine the shareholder's New Jersey tax liability and may affect:
- New Jersey taxable income
- New Jersey credits
- New Jersey withholding or tax payments
- New Jersey refund or balance due
How Does This Affect My Return?
Information entered from an NJK-1 may:
- Increase or decrease New Jersey taxable income.
- Generate New Jersey credits.
- Allow credit for New Jersey tax paid on your behalf.
- Affect your refund or tax due.
- Allocate partnership or S corporation income to New Jersey.
Notes
- Enter information from the New Jersey Schedule NJK-1, not the federal Schedule K-1.
- New Jersey amounts may differ from federal amounts.
- If you did not receive a New Jersey Schedule NJK-1, contact the partnership or S corporation.
- Keep a copy of all NJK-1 schedules with your tax records.
- Review all supporting schedules that accompany the NJK-1, as additional New Jersey adjustments or credits may be reported separately.