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File part-year and nonresident returns

New Jersey defines gross income for part-year and nonresident returns as gross income had the taxpayer filed as a resident of New Jersey.
If the taxpayer was a part-year resident of New Jersey and earned NJ income during their nonresidency period, you'll need to file Form NJ-1040 for the period they were a resident and a separate Form NJ-1040NR for the period that they earned New Jersey income as a nonresident.
  1. On the return you're filing for the resident period, select
    File
    ,
    Client Properties
    , the
    New Jersey
     tab, then indicate a part-year resident return.
  2. On the
    NJNRPY
     screen, enter the
    Part-year residency dates
     that the taxpayer lived in New Jersey.
  3. For any income you enter at the federal level, enter a
    NJ
     postal code for all income that was earned during the time the taxpayer lived in New Jersey.
  4. Create a copy of the client by selecting
    File
     then
    Save As
     to create the 2nd nonresident return.
  5. Change the residency status to
    Nonresident
     by selecting
    File
    ,
    Client Properties
    , then the
    New Jersey
     tab.
  6. In the 2nd (nonresident) return, remove the
    NJ
     postal code for all income that you indicated for the resident period in step 3.
  7. Enter the
    NJ
     postal code to any income that was earned in New Jersey while the taxpayer was a nonresident.
  8. File the 1st part-year return as you'd normally with the federal return.
  9. File the 2nd nonresident return as a state-only return. Note that you can't e-file both returns. You'll need to paper file the state-only return.
Filing threshold
UltraTax CS doesn't calculate tax on returns where the total of New Jersey gross income on Form NJ-1040, line 29, is less than $20,000 on MFJ returns or $10,000 on single or MFS returns. New Jersey defines gross income for part-year and nonresident returns as gross income had the taxpayer filed as a resident of New Jersey.
If the
NJNRPY
 screen in the
Income & Adjustments
 folder is blank, UltraTax CS determines if the taxpayer has met the filing threshold by adding gross income amounts, not including nontaxable interest, from the Gross Income Worksheet. If the return was filed as a resident, this calculation also excludes the retirement exclusion.
  • Gross Income Worksheet
UltraTax CS calculates the Gross Income Worksheet based on postal codes you enter at the federal level. The New Jersey Source Amounts column is then adjusted for New Jersey law (for example, losses are limited to zero). You can use form overrides to adjust amounts as needed. Form overrides made in these columns transfer through to the rest of the return regardless of the residency status.
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