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Screen NJAdj - New Jersey Income and Adjustments (1040)
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Overview
Use this screen to enter adjustment to income to complete Form NJ-1040 and NJ 1040 NR. Exclusions and deductions are entered in the NJAdj-2 screen. Interest and dividend income is entered in the federal B&D screen. Interest and dividend income is included in S corporation, partnership, and regular trust income as ordinary business. Interest from a grantor trust is entered in the NJK1T screen. These screens may be accessed by using the links provided in the NJAdj screen. Interest and dividend data entered in the statement windows in the federal B&D screen is utilized in the calculation of state income and adjustments. In the federal B&D screen
Interest income
and Dividend income
statement windows, you may indicate if data should be applied only to the federal or only to the state return. In addition, use of the State
postal code and In-State Source %
indicates which state should react to the data entered in the federal statements.- EnterFin theF/Sfield to indicate that the item is for the federal return only.
- EnterSin theF/Sfield and a non-NJ postal code in theStatefield to indicate that the item transfers only to the state specified and is ignored for federal purposes.
- For New Jersey source interest and dividends reportable on part-year and nonresident New Jersey returns, you must enterNJin theStatefield in these federal statements. Further, for interest and dividends reportable as New Jersey source for nonresident New Jersey returns, you must also enter a percentage in theIn-State Source %field.
Interest and Dividends
Use this section to enter information for the calculation of Forms NJ-1040 and NJ-1040NR interest and dividend income.
Print interest and dividend statements when not required
UltraTax/1040-NJ only produces a statement for tax-exempt interest when the tax-exempt amount exceeds $10,000 and regular interest exceeds $1,500. Enter
X
to prompt all interest and dividend statement detail to print with the return. The statement that prints is accepted by the state in lieu of a copy of the federal Schedule B. An option is available to force interest and dividend statements to print for all clients. Select Setup
, 1040 Individual
, the New Jersey
tab, then Other Return Options
.Income
UltraTax CS uses the information in this section to complete the other income and various allowable deduction lines on Forms NJ-1040 and NJ-1040NR and portions of New Jersey Schedules B and C. For New Jersey purposes, there's no equivalent election for reporting a child's interest and/or dividend income on the parent's return, and any interest and/or dividends reported on federal Form 8814 have been omitted from the New Jersey return.
Explanation of W-2 reimbursements and other wage adjustments
Use the statement window to enter a statement explaining W-2 reported amounts (such as meals and/or lodging, employee business expenses, and moving expenses) excluded from the amount reported as wages on Form NJ-1040 or Form NJ-1040NR. The amounts to be excluded are entered in Box 14 of the federal W2 screen, and are transferred to the
Other Reimbursements
fields in the NJW2 screen. Additionally, enter details when wage amount reported on a New Jersey return don't match the W2 box 16 wages reported to the state of New Jersey.If you have separate documents that explain the reason for not reporting Box 16 wage amounts, you can scan and attach using the "Electronic filing attachment" feature to include in e-file. Reference the attachment here using the attachment name.
Other net gains (Force)
The amount calculated on federal Form 4797 for ordinary gains is reduced for those dispositions that are business related or otherwise identified as dispositions reported as business, rental, partnership, S Corporation or trust and estate gains. The remainder are treated as dispositions of a personal nature and reported as other net gains on Form NJ-1040, Schedule ABC, Schedule B for resident returns; or Form NJ-1040NR, Page 2, Part I for nonresident returns. See the NJC, NJF, NJK1, NJ4835, and NJK1T screens for amounts adjusted out of Form 4797 gains reported on the federal return. An effort has been made to capture all amounts necessary for this calculation. Some gains related to casualty and theft as well as prior year installment gains, and passive activity limitations aren't available for transfer as either identifiable to a particular activity unit or aren't available as adjusted for New Jersey basis. Use these fields to override the calculated amount.
Business related dispositions are reported as business related income if the entire business unit hasn't been disposed. See the worksheets for business income, farm income, partnership income, S Corporation income, farm rental income and trust and estate income.
REMIC income (loss)
Amounts in the statement window attached to these fields transfer from the
REMICs Information - Schedule for detail
statement window in the federal B&D screen. REMIC income is added to partnership income for reporting purposes on Forms NJ-1040 and NJ-1040NR.Net gambling winnings
Gambling income transfers from the federal W2G, 1099M, and Income screens. Gambling winnings not from lottery tickets can be coded using a federal code
1
in the Other income
statement window in the 1099M and Income screens. Lottery winnings that should be included in taxable income may be coded with a federal code 2
in the Other income
statement window in the 1099-M and Income screens. If the lottery winnings may be excluded from taxable income in the W2G, 1099M, or Income screens, use the state use code 2
for excludable state lottery. Gambling losses reported in the federal A screen transfer to this field. If any New Jersey data differs from the federal data, delete the data or enter the state data in the appropriate column. The new data displays in black and subsequent federal to state transfers don't overwrite this data. For more information, see Statements overview.Other income
Amounts in the statement windows transfer from the
Other income
statement window in the federal Income screen, except for amounts coded 1
, 2
, 7
, 14
, and F
(federal only), which are omitted. Some other income entries treated as wages for federal purposes are treated as other income for New Jersey purposes. Taxable scholarships not reported on W2, federal code 5
, household employee income not reported on W2, federal code 10
, and workfare payments, federal code 11
, are a few examples of amounts that are treated in this way.Other wages
If any New Jersey data differs from the federal data, delete the data or enter the state data in the appropriate column. The new data displays in black with red chevrons and subsequent federal to state transfers don't overwrite this data. For more information, see Statements overview.