Partners directory column H - nonresident partners share of total income: 1065 New Jersey (NJ)
According to NJ-1065 instructions,
- Nonresident partner share of total income (box H) is the total of federal Schedule K-1, lines 1-11 + the tax-exempt interest from line 18.
- Taxable income (box I) multiplies the amount in box H (federal amounts) by the corporate allocation factor from Schedule J. This amount is likely to be different from the NJ income reported on Schedule NJK-1.
- Nonresident withholding tax (box J & K), multiplies box I by the applicable tax rate.
If you are unable to reconcile the box H amount, verify whether there are separately stated gains from 20c or specially allocated deductions not included in the net income of the activity. These amounts are also required by the state to be included in box H, while it isn't mentioned in the instructions.
Tax will be calculated for composite partners on the partner's directory. A credit for taxes paid will be made on the composite return (Form NJ-1080-C).
