Official Site of The State of New Jersey

Changes to the Nonresident Partner's Share of Tax Calculation for 2024 NJ-1065

P.L. 2023, c.96, which was signed into law on July 3, 2023, made a series of technical corrections, clarifications, and changes to the Corporation Business Tax Act (CBT), Gross Income Tax Act (GIT), and other miscellaneous requirements. Information pertaining to the law changes can be found in TB-112(R). As a result of this legislation, the computation of the nonresident partner’s share of tax on the 2024 NJ-1065 (and for subsequent years) was modified. The tax is now based on the total of the nonresident partner’s share of New Jersey income. The nonresident partner’s share of New Jersey income is calculated by adding the amounts reported in Columns D and F of the Partners Directory, and entering the result in Column H.

The Division will waive the 2024 late filing penalty and the 2025 interest charged for the underpayment of estimated tax payments if the partnership demonstrates that the charges were a result of the partnership calculating its nonresident partner’s share of tax using the pre-2024 tax calculation method. Third and fourth quarter 2025 estimated tax payments must be adjusted and paid to reflect the correct 2024 total nonresident partner’s share of tax. Waiver from penalty and interest can only be granted once assessed and the partnership is notified (i.e. billed). The partnership should send its request for relief to the address listed on its billing notice, and specify that it is requesting relief due to calculating its nonresident partner’s share of tax using the pre-2024 calculation method.