New Jersey Net Profits From Business - NJ-BUS-1
Reporting net profits from business in New Jersey requires careful completion of Schedule NJ-BUS-1, which is attached to your New Jersey individual income tax return (Form NJ-1040, NJ-1040NR, or NJ-1041). This schedule helps determine the portion of your business income that is attributable to New Jersey sources, which is essential for calculating your state tax liability.
Key Reporting Requirements
- Net Profits from Business (Line 18, Column A): Enter the total net profits from your business as calculated on Schedule NJ-BUS-1, Part I, line 4. If the net amount is a loss, do not enter anything on line 18, column A.
- New Jersey Source Allocation (Column B): Enter only the portion of your business income that comes from New Jersey sources. If you operate a business both inside and outside New Jersey, you must complete Form NJ-NR-A to determine the allocation factor.
- Part-Year Residents/Nonresidents: Include only income received while you were a resident or nonresident of New Jersey, as applicable.
Business Income Details to Report
- Business name as listed on Schedule C, C-EZ, or F
- Social Security number or federal EIN
- Profit or (loss) as adjusted for New Jersey purposes
Additional Income Types
Other income types reported on Schedule NJ-BUS-1 include:
- Net gains or income from disposition of property (Schedule NJ-DOP)
- Net rental, royalty, patent, and copyright income (Schedule NJ-BUS-1, Part II)
- Distributive share of partnership income
- Pro rata share of S corporation income
Important Notes
- For nonresidents carrying on business in New Jersey, Form NJ-NR-A must be enclosed with the return to allocate income properly.
- Ensure that all entries in Column B reflect only New Jersey-sourced income. If none, enter “0.”
- Do not report pension income or other types of income on the business income lines.
Source:
Form NJ-1040NR
Form NJ-1040
Form NJ-NR-A
Publication GIT6
Disclaimer: Always verify details with the official forms and instructions from the New Jersey Division of Taxation or the Federal Internal Revenue Service. OLT (Online Taxes) provides guidance based on retrieved information and does not guarantee tax outcomes.