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CCH Axcess Tax

New Jersey - Code and Amount

Enter the code in the "State Use - Code" field to designate what kind of income and to what line on the New Jersey return the income will should carry.

Valid codes are:

The codes listed above are not valid for entity type of "S" for S corporation.

Enter the New Jersey net pro rata share of S corporation income in the "State Use - Amount" field. This entry carries to the New Jersey Schedule NJ-BUS-1 for residents, and for nonresidents, to the New Jersey Form NJ-1040NR, if coded to New Jersey source, or the New Jersey Schedule NJ-BUS-1 (NR), if all source.

Estate and trust income is reported on the "Other Income" line on page 2 of the NJ-1040 or page 1 of the NJ-1040NR unless a code of 7 is entered indicating grantor trust. When a code 7 is entered, interest, dividends and capital gains are reported in their respective categories of income as required for gross income tax purposes. For New Jersey part-year and nonresident returns, enter the all source income from estates and trusts in the "State Use - Amount" field. For residents, enter each item of income on the appropriate line.

For nonresident returns, if the all source amount is different than the New Jersey source amount, enter a code "90" in the "State Use - Code" field to designate the amount entered in the "State Use - Amount" field is all source income. Enter a code "9" to designate the amount entered in the "State Use - Amount" field as New Jersey source income. This only applies to partnership and S corporation passthroughs.

Partnership income - If investment interest expense is entered and should be included in the calculation as trade or business expenses then the amount must be entered in the "State Use - Amount" field which will override the calculated amount which doesn't include investment interest expenses entered.