Data entry for a partnership New Jersey K-1
New Jersey law requires that pass-through entities supply a New Jersey Schedule K-1 showing the income calculated under New Jersey law and it be reported on the individual's New Jersey return.
If a partner has a New Jersey Schedule K-1 from a partnership and the 1065 return was prepared in UltraTax CS, the New Jersey information will data share into the individual New Jersey return. If the New Jersey Schedule K-1 wasn't prepared in UltraTax CS, enter the data as follows:
- Part II, Box 4A -If the taxpayer is a resident of New Jersey, enter the Total Distributive Share of Partnership income (line 4, column A) on the federalK1-2screen in theOrdinary business income (loss) - State, if differentfield. If the K-1 is coded to a state other than New Jersey (based on theState postal code), use the NJ column in the Allocation grid instead. If the taxpayer is a part-year or nonresident of New Jersey, enter this amount on the federalK1Stscreen in theOrdinary income everywherefield. If the K-1 is multi-state, multiple screens ofK1Stscreen will exist. Verify that the ordinary income amount is entered on the NJ unit.
- Part II, Box 4B -If the taxpayer is a resident of New Jersey, amounts in column B will be the same as column A and no additional data entry is required for column B amounts. For part-year and nonresidents, enter the New Jersey source amount on theK1-2screen in theOrdinary business income (loss) - State, if differentfield. If the K-1 is coded to a state other than New Jersey (based on theState postal code), use the NJ column in the Allocation grid instead.
- Part II, Box 5A -If there's an amount for Pension in Box 5A, the taxpayer should've received an Form 1099R as well. Enter this amount in theGross distributionfield on the federal1099Rscreen in theRetirementfolder.
- Part II, Box 6A -When an amount is in this box, there's a gain or loss from a sale of partnership and the federal K1 unit should be marked as disposed of on theK1-2screen. Use the federalSalescreen or the Schedule for detail statement on the federalB&Dscreen to enter the gain and any other relevant sale information.
- Part II, Box 6B -When the New Jersey source of gain or loss from sale of partnership is different than the federal, use the Statement for detail on the federalB&Dscreen to enter the sale. This statement will allow you to split the sale on multiple lines. Enter the portion that is NJ source on 1 line withStatecode NJ, and theFormandUnitfield coded to the proper unit of the K1. On a new line within the statement, enter the rest of the sale without aStatecode (or different state) so that the federal return reports the full amount of the gain or loss.
- Part III, Box 1 -Enter the nonresident partner's share of NJ tax on the federalK1-4screen in theState income tax withheld - State, if differentfield. If the K-1 is coded to a state other than New Jersey (based on theState postal code), use the NJ column in the Allocation grid instead.
- Part III, Box 2 -Enter the partner's HEZ deduction on theNJAdj-2screen in theHealth enterprise zone deductionfield. Note that this amount is the total amount and not a "per K-1" amount.
- Part III, Box 3 -Enter the partner's sheltered workshop tax credit on theNJCrscreen in theCreditsfolder. Note that this is also a total amount and not a "per K-1" amount.
