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Re: Authorized format for New Jersey Gross Income Tax Fiduciary Returns (Form NJ-1041)
Electing Small Business Trust (ESBT)
Form NJ-1041SB is the only form acceptable for the filing and reporting of income to New Jersey by an Electing Small Business Trust. A Gross Income Tax Fiduciary Return, Form NJ-1041, which duplicates the federal Form1041 format required by the Internal Revenue Service for Electing Small Business Trusts has not been approved by the Division of Taxation and is not an authorized tax return for New Jersey gross income tax purposes.
A federal grantor trust is required to complete a New Jersey Gross Income Tax Fiduciary return, Form NJ-1041, in accordance with the NJ-1041 line-by line general instructions and specific grantor trust instructions. A NJ-1041 format which duplicates the federal Form 1041 instructions and ignores the grantor trust’s income and deductions has not been approved by the Division of Taxation and is not an authorized tax return for New Jersey gross income tax purposes.
In addition, for tax years beginning in 2007, a grantor trust is required to prepare a Schedule NJ K-1, Form NJ-1041, listing the income, loss and gain amounts reportable by the grantor on their Form NJ-1040 or 1040NR, an attachment in lieu of a detailed Schedule NJK-1, Form NJ-1041 in not an acceptable format.