Division of TaxationThere may be New Jersey Gross Income Tax obligations if you are a nonresident athlete, entertainer, worker, media consultant, or individual who performs services or participates in an event occurring in New Jersey.
The New Jersey Gross Income Tax Act imposes tax on nonresidents who earn income derived from sources within New Jersey in connection with a trade, profession, occupation carried on in this State or for personal services performed in this State. New Jersey does not provide for a de minimis exception for nonresident earnings. Any income that is sourced to New Jersey is subject to employer withholding and is subject to tax when earned by a nonresident, so long as the nonresident’s income from everywhere meets the minimum filing threshold.
Example 1: Taxpayer A, a California resident, worked in New Jersey as a media consultant for one month earning $22,000 in wage income. The taxpayer would generally be subject to New Jersey Gross Income Tax as a nonresident and should file a New Jersey Nonresident Income Tax Return (NJ-1040NR).
The New Jersey source income of a nonresident individual who is a member of a professional athletic team is calculated based on the ratio of duty days spent within New Jersey proportionate to the total number of duty days spent both within and without New Jersey during the taxable year. Duty days include all days from the start of the team’s official preseason training through the final scheduled game, and also days on which a member renders services to the team, such as practice days, team meetings, promotional appearances, and rehabilitation activities conducted at team facilities.
Example 2: Player B, a member of a professional athletic team, is a nonresident of New Jersey. Player B travels to New Jersey to participate in a game for a world-wide sports event as a representative of B's team. The number of days B spends in New Jersey for practice, the game, meetings, and other services for the team, count as duty days spent in New Jersey for Player B for that tax year, as well as included in total duty days spent within and without New Jersey.
Example 3: Player C, a member of a professional athletic team, is a nonresident of New Jersey. Player C is not participating in the world-wide sports event and is not providing services for C's team in any manner. Player C is traveling to and attending such game solely as a spectator. The number of days Player C spends in New Jersey for such game do not count as duty days spent in New Jersey. However, such days may be included in the total duty days spent both within and without New Jersey.
For additional information, definitions and examples, please see N.J.A.C. 18:35-5.1.
Eligible pass-through entities may file a Composite New Jersey Nonresident Gross Income Tax Return (Form NJ-1080-C) on behalf of its qualified nonresident individual members. Please see N.J.A.C. 18:35-5.2.
Owners of unincorporated businesses, including sole proprietors or partners, are subject to New Jersey Gross Income Tax based on their profits from their services performed in New Jersey. Corporations are subject instead to the New Jersey Corporation Business Tax.
For additional information on nonresident filing requirements, please see the GIT-6 Part Year Residents and Nonresidents .
For additional information regarding income tax withholding, please see the New Jersey Income Tax Withholding Instructions (NJ-WT) .
Official Site of The State of New Jersey