reglab/statecodes huggingface dataset:
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-1.1 - Resident taxpayer, income, wage tax refund denied, appeal, judgement resulting in refund, credit against tax.

54A:4-1.1 Resident taxpayer, income, wage tax refund denied, appeal, judgement resulting in refund, credit against tax.
3. a. For taxable years beginning on and after January 1, 2020 but before January 1, 2024, a resident taxpayer who:
(1) pays any income tax or wage tax imposed for the taxable year by another state of the United States, or political subdivision of such state, or by the District of Columbia;
(2) applies for and is denied a refund from such state or jurisdiction for taxes paid to that state or jurisdiction on income derived from services rendered while the resident taxpayer was within New Jersey;
(3) files an appeal with a tax court or tribunal through which the resident taxpayer formally protests the denial by another state or jurisdiction of the refund requested by the resident taxpayer for taxes paid on income derived from services rendered while the resident taxpayer was within New Jersey; and
(4) obtains a final judgement from the tax court or tribunal resulting in the resident taxpayer being refunded taxes paid to another state or jurisdiction on income derived from services rendered while the resident taxpayer was within New Jersey shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in amount equal to 50 percent of the amount of taxes that are owed to the State of New Jersey as a result of the readjustment of the credit for tax of another state pursuant to subsection (e) of N.J.S.54A:4-1.
b. If the amount of the credit allowed pursuant to subsection a. of this section exceeds the amount of tax otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7; provided however, that subsection (f) of N.J.S.54A:9-7 shall not apply.
L.2023, c.125, s.3.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-1.2 - Regulations.

54A:4-1.2 Regulations.
5. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the Director of the Division of Taxation in the Department of the Treasury may adopt, immediately upon filing with the Office of Administrative Law, regulations that the director deems necessary to implement the provisions of sections 1 through 3 of P.L.2023, c.125 (C.54A:4-1.1 et al.), which regulations shall be effective for a period not to exceed 180 days from the date of the filing. The director shall thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
L.2023, c.125, s.5.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-2 - Credit for taxes withheld, paid by S corporation

54A:4-2. Credit for taxes withheld, paid by S corporation
54A:4-2. Credit for taxes withheld. a. Any amount of tax actually deducted and withheld by an employer under this act in any calendar year shall be deemed to have been paid to the director on behalf of the person from whom withheld, and such person shall be credited with having paid that amount of tax for the taxable year beginning in such calendar year. For a taxable year of less than 12 months, the credit shall be made under regulations of the director.
b. An amount of tax actually paid to the director by an S corporation pursuant to subsection c. of section 4 of P.L.1993, c.173 (C.54:10A-5.23), shall be credited to the shareholder of the S corporation on whose behalf the payment was made as of the date of its receipt by the director, except as otherwise provided by N.J.S.54A:9-11, and the shareholder shall be credited with having paid that amount of tax for the taxable year in which the S corporation's accounting or privilege period ends.
L.1976, c.47, s. 54A:4-2; amended 1993,c.173,s.8.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-4 - Credit in lieu of refund of unemployment compensation contributions

54A:4-4. Credit in lieu of refund of unemployment compensation contributions
a. Any employee who is a taxpayer and entitled, pursuant to the provisions of R.S. 43:21-7(d)(3) or section 1 of P.L.1944, c. 81 (C. 43:21-14.1), to a refund of contributions deducted during a tax year from his wages shall, in lieu of such refund, be entitled to a credit in the full amount thereof against the tax otherwise due on his New Jersey gross income for that tax year if he submits his claim for the credit and accompanies that claim with evidence of his right to the credit in such manner as the Director of the Division of Taxation may by regulation provide. In any case in which the amount, or any portion thereof, of any credit allowed hereunder results in or increases an excess of income tax payment over income tax liability, the amount of such new or increased excess shall be considered an overpayment and shall be refunded to the taxpayer in the manner provided by subsection (a) of N.J.S. 54A:9-7.
b. On the first day of each month, or at such other time as the director shall determine, the director shall forward to the Division of Unemployment and Temporary Disability Insurance a statement of the total amount of credits actually allowed pursuant to subsection a. of this section during the preceding month or period covered by the statement. Such statement shall indicate the totals of credits allowed on claims and shall be accompanied by such documents as the director and the Director of the Division of Unemployment and Disability Insurance shall prescribe. Moneys reimbursed by the Division of Unemployment and Temporary Disability Insurance to the director shall be treated as taxes collected under the provisions of this Title.
L.1981, c. 453, s. 2, eff. Jan. 11, 1982.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-5 - Reimbursement of director by division of unemployment and temporary disability insurance

54A:4-5. Reimbursement of director by division of unemployment and temporary disability insurance
Upon receipt from the director of a statement of the total amount of State income tax credits allowed on claims, the Division of Unemployment and Temporary Disability Insurance shall within 5 days reimburse to the director from the respective funds sums equal to the amounts so allowed. No interest shall be paid with respect to the sums reimbursed.
L.1981, c. 453, s. 3, eff. Jan. 11, 1982.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-6 - Findings, declarations relative to an earned income tax credit

54A:4-6. Findings, declarations relative to an earned income tax credit
1. The Legislature finds and declares that:
a. Since its enactment in 1975, the federal earned income tax credit has received bipartisan support and has proven to be one of the nation's most effective anti-poverty programs for working families by encouraging work, supplementing earnings and lifting nearly five million people out of poverty each year, approximately half of them children;
b. The federal earned income tax credit has contributed to a significant increase in labor force participation among New Jersey families;
c. A New Jersey Earned Income Tax Credit will build upon the federal program by cutting taxes for families struggling to provide for their children, reducing child poverty, supporting welfare-to-work efforts and making New Jersey a better place to live, work and raise a family;
d. Over the last six years, New Jersey's unemployment rate has fallen to its lowest rate in nearly a decade, and a significant number of the State's families who were dependent on welfare have made the transition from public assistance to work, often beginning in low-wage or entry-level positions; and
e. A New Jersey Earned Income Tax Credit can further promote work and job retention by supplementing the incomes of nearly 280,000 low-income working families as they move up the career ladder and remain independent from public assistance.
L.2000,c.80,s.1.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-8 - Annual appropriation for administration

54A:4-8. Annual appropriation for administration
3. There shall be annually appropriated to the Department of the Treasury such amount as the Director of the Division of Budget and Accounting in the Department of the Treasury shall determine is necessary for the administrative cost of implementing the provisions of this act.
L.2000,c.80,s.3.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-9 - Availability of statistical information

54A:4-9. Availability of statistical information
4. The Department of the Treasury shall make available to the Department of Human Services necessary statistical information obtained with respect to the New Jersey Earned Income Tax Credit program, in a usable format and in a timely manner, to prepare federal and other reports.
L.2000,c.80,s.4.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-10 - Regulations

54A:4-10. Regulations
5. a. The Director of the Division of Taxation in the Department of the Treasury shall adopt regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and prescribe forms to administer the provisions of this act.
b. Notwithstanding the provisions of P.L.1968, c.410 to the contrary, the director may adopt, immediately upon filing with the Office of Administrative Law, such regulations as the director deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 180 days from the date of the filing. The regulation may thereafter be amended, adopted or readopted by the director as the director deems necessary in accordance with the requirements of P.L.1968, c.410.
L.2000,c.80,s.5.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-15 - Veteran care credit for qualified family caregivers; definitions.

54A:4-15 Veteran care credit for qualified family caregivers; definitions.
2. a. A qualified family caregiver shall be allowed a qualified veteran care credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of the federal veteran disability compensation of a qualified armed service member for which the qualified family caregiver renders care or $675, whichever is less.
b. If two or more qualified family caregivers qualify for the qualified veteran care credit for the same qualified armed service member, the amount of the credit allowed shall be allocated in proportion to each qualified family caregiver's share of total care expenses provided for the taxable year.
c. If the qualified veteran care credit allowed pursuant to this section, together with any other payments, credits, deductions, and adjustments allowed by law, reduces a qualified family caregiver's tax liability otherwise due for the taxable year under N.J.S.54A:1-1 et seq. to zero, the amount of the credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax in accordance with N.J.S.54A:9-7; provided however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
d. A qualified family caregiver who is not subject to tax in accordance with N.J.S.54A:2-4 for a taxable year may apply for a qualified veteran care credit using an application to be made available by the director. The due date for a qualified veteran care credit application shall coincide with the due date for annual gross income tax returns.
e. As used in this section:
"Qualified armed service member" means an individual who has a disability arising out of service in the active military or naval service of the United States in any war or conflict on or after September 11, 2001, has been honorably discharged or released under conditions other than dishonorable, meets the requirements for total disability ratings for compensation based upon unemployability of the individual as determined by the United States Department of Veterans Affairs, and has resided with the qualified family caregiver in this State for not less than six months of the taxable year.
"Qualified family caregiver" means an individual resident of this State with gross income for the taxable year not in excess of $100,000 if filing jointly, as a head of household, or as a surviving spouse, or not in excess of $50,000 if filing separately or unmarried, who provides care and support to a qualifying armed service member to whom the caregiver is a relative.
"Relative" means an individual related by consanguinity within the third degree by law or blood.
L.2017, c.67, s.2.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-16 - Tax credit.

54A:4-16 Tax credit.
6. a. For taxable years beginning on or after January 1, next following the effective date of P.L.2017, c.174 (C.38A:3-51 et al.), a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the amount documented annually by the Department of Military and Veterans' Affairs for the Gold Star Family Counseling Program as established pursuant to section 3 of P.L.2017, c.174 (C.38A:3-53).
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the director.
The amount of the credit applied against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. shall not reduce a taxpayer's New Jersey gross income tax liability to an amount less than zero.
c. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a credit directly, but the amount of credit of a taxpayer in respect of a distributive share of entity income, shall be determined by allocating to the taxpayer that proportion of the credit acquired by the entity that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the entity for its taxable year ending within or with the taxpayer's taxable year.
A New Jersey S Corporation shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.
L.2017, c.174, s.6.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-17 - Certain credits permitted.

54A:4-17 Certain credits permitted.
5. a. A resident taxpayer with New Jersey taxable income of $150,000 or less who is allowed a credit for expenses for household and dependent care services for federal income tax purposes pursuant to section 21 of the Internal Revenue Code (26 U.S.C. s.21) shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The credit shall be in an amount equal to a percentage of the credit allowed the taxpayer for federal income tax purposes for the taxable year, according to the following schedule:
NJ taxable income is: Amount of NJ credit is:
Not over $30,000 50% of federal credit
over $30,000 but not over $60,000 40% of federal credit
over $60,000 but not over $90,000 30% of federal credit
over $90,000 but not over $120,000 20% of federal credit
over $120,000 but not over $150,000 10% of federal credit.
The $150,000 income limit set forth in this subsection shall apply to taxpayers of any filing status.
b. If the amount of the credit allowed pursuant to this section exceeds the amount of gross income tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., the amount of excess shall be treated as a refundable overpayment.
c. Married couples shall file a joint return in order to claim the credit provided by this section. A taxpayer eligible to receive a credit pursuant to paragraph (3) or (4) of subsection (e) of section 21 of the federal Internal Revenue Code (26 U.S.C. s.21) shall be eligible for the credit provided by this section, provided the taxpayer satisfies the income limit set forth in subsection a. of this section.
d. In the case of a part-year resident claimant, the amount of the credit allowed pursuant to this section shall be pro-rated, based upon that proportion which the total number of months of the claimant's residency in the taxable year bears to 12 in that period. For this purpose, 15 days or more shall constitute a month.
L.2018, c.45, s.5; amended 2021, c.308.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-17.1 - Child tax credit, income limit.

54A:4-17.1 Child tax credit, income limit.
1. a. A resident taxpayer with New Jersey taxable income of $80,000 or less shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for each child who has not attained the age of six years as of the close of the taxable year and for which the taxpayer is allowed a deduction under N.J.S.54A:3-1.
The credit shall be in the following amounts:
If the taxable income is: The credit is:
$30,000 or under $1,000
over $30,000 but not over $40,000 $800
over $40,000 but not over $50,000 $600
over $50,000 but not over $60,000 $400
over $60,000 but not over $80,000 $200
The income limit set forth in this section shall apply to taxpayers of any filing status.
b. A taxpayer shall be allowed the credit pursuant to this section whether the taxpayer uses a Social Security number or an Individual Taxpayer Identification Number on their tax forms.
c. If the amount of the credit allowed pursuant to this section exceeds the amount of tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., after all other credits and deductions, the amount of excess shall be treated as a refundable overpayment.
d. To qualify for the credit allowed pursuant to this section, a taxpayer shall file a joint return if the taxpayer is married, except for a taxpayer who files as a head of household or surviving spouse for federal income tax purposes for the taxable year.
e. In the case of a part-year resident, the amount of the credit allowed pursuant to this section shall be pro-rated, based upon that proportion which the total number of months of the taxpayer's residency in the taxable year bears to 12 in that period. For this purpose, 15 days or more shall constitute a month.
f. Any tax credit pursuant to this section shall not be taken into account as income for purposes of determining the eligibility of an individual for benefits or assistance or the amount or extent of benefits or assistance under any State program and, to the extent permitted by federal law, under any State program financed in whole or in part with federal funds.
g. The Division of Taxation shall issue data as part of the annual tax expenditure report, as required by section 1 of P.L.2009, c.189 (C.52:27B-20a) to include the number of taxpayers claiming the New Jersey Child Tax Credit, as well as claimants' income, the number of children benefitting, and the average credit amount per child and per claimant.
L.2022, c.24; amended 2023, c.72.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-18 - Credit against gross income tax

54A:4-18. Credit against gross income tax
9. a. The Director of the Division of Taxation in the Department of the Treasury shall allow an employer a credit against the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. in the amount certified by the Commissioner of Labor and Workforce Development as the taxpayer's tax credit amount pursuant to section 6 of P.L.2019, c.32 (C.34:11-56a40). To claim the tax credit amount for a taxable year, the taxpayer shall submit to the director the certificate of credit issued for that taxable year by the commissioner pursuant to section 6 of P.L.2019, c.32 (C.34:11-56a40).
b. An employer shall apply the credit awarded against the employer's liability under the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for the taxable year during which the director allows the employer a tax credit pursuant to this section. An employer shall not carry forward an unused credit.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero. No tax credit shall be allowed pursuant to this section for any wages and payroll taxes included in the calculation of any other tax credit granted pursuant to a claim made on a tax return filed with the director for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
d. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
A taxpayer that is a New Jersey S corporation shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a pro-rata share of S corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro-rata share of S corporation income of the New Jersey S corporation for its privilege period ending within or with the taxpayer's taxable year.
L.2019, c.32, s.9.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:4-20 - Employer allowed credit for employee who donates organ, bone marrow.

54A:4-20 Employer allowed credit for employee who donates organ, bone marrow.
5. a. A taxpayer that employs a person who missed time from work during the taxable year because the person donated one or more of the person's human organs, or a part thereof, or bone marrow to another human for human organ transplantation, shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the person's salary during the time missed from work, for up to 30 days of missed work for each donation.
A taxpayer shall only be allowed this credit for the time that the taxpayer grants the person paid time off and only if such time is in addition to any other paid time off granted to the person.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero.
c. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year. Any remaining credit shall not be carried forward to another taxable year.
A taxpayer that is a New Jersey S corporation shall not be allowed the credit directly, but the amount of credit of a taxpayer in respect of a pro rata share of S corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro-rata share of S corporation income of the New Jersey S corporation for its privilege period ending within or with the taxpayer's taxable year.
L.2019, c.444, s.5.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-1.2 - Determination of category of income net of expenses or depreciation, certain; timing.

54A:5-1.2 Determination of category of income net of expenses or depreciation, certain; timing.
26. a. For taxable years beginning on or after January 1, 2004, notwithstanding the provisions of N.J.S.54A:5-1, if any, or any other law to the contrary, for the purposes of determining the amount of a category of income pursuant to N.J.S.54A:5-1 that is net of expenses:
(1) notwithstanding the provisions of subsection (k) of section 168 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.168, subsection (b) of section 1400L of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1400L, or any other federal law, for property placed in service on or after January 1, 2004, the depreciation deduction otherwise allowed pursuant to section 167 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.167, shall be determined pursuant to the provisions of the federal Internal Revenue Code of 1986 (26 U.S.C. s.1 et seq.) in effect on December 31, 2001; and
(2) notwithstanding the provisions of section 179 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.179, for property placed in service on or after January 1, 2004, the costs that a taxpayer may otherwise elect to treat as an expense which is not chargeable to a capital account shall be determined pursuant to the provisions of the federal Internal Revenue Code of 1986 (26 U.S.C. s.1 et seq.) in effect on December 31, 2002.
b. The director shall prescribe the rules and regulations necessary to carry out the provisions of this section, including, among others, those for determining the adjusted basis of the acquired property for the purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.
L.2004,c.65,s.26.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-1.1 - Certain IRA roll over amounts protected for 4 years.

54A:5-1.1 Certain IRA roll over amounts protected for 4 years.
3. Notwithstanding the provisions of N.J.S.54A:5-1 or any other law to the contrary, in the case of a distribution before January 1, 1999, any amount required to be included in gross income by reason of the amendments to subsection j. of N.J.S.54A:5-1 enacted pursuant to section 1 of P.L.1998, c.57 shall be so included ratably over the 4-taxable year period beginning with the taxable year in which the payment or distribution is made.
L.1998,c.57,s.3.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-2 - Losses

54A:5-2. Losses
Losses which occur within one category of gross income may be applied against other sources of gross income within the same category of gross income during the taxable year. However, a net loss in one category of gross income may not be applied against gross income in another category of gross income.
L.1976, c. 47, s. 54A:5-2, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-3 - Taxability of estates, trusts and their beneficiaries

54A:5-3. Taxability of estates, trusts and their beneficiaries
The income of a beneficiary of an estate or trust in respect of such estate or trust shall consist of that part of the income or gains received by the estate or trust for its taxable year ending within or with the beneficiary's taxable year which, under the governing instrument and applicable State law, is required to be distributed currently or is in fact paid or credited to said beneficiary.
The income or gains of the estate or trust, if any, taxable to such estate or trust shall consist of the income or gains received by it which has not been distributed or credited to its beneficiaries.
Where an estate or trust has paid a tax under this act upon income distributed or to be distributed to a beneficiary, such beneficiary may exclude such income from his gross income in the year paid or credited to him.
L.1976, c. 47, s. 54A:5-3, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-4 - Taxability of partners

54A:5-4. Taxability of partners
54A:5-4. a. Except as provided in subsections b. and c. of this section, a partnership or association as such shall not be subject to the tax imposed by this act, but the income or gain of a partner or member of a partnership or association shall be subject to the tax and the tax shall be imposed on the partner's or member's share, whether or not distributed, of the income or gain received by the partnership or association for its taxable year ending within or with the partner's or member's taxable year.
b. A partnership shall report and make payment of any New Jersey gross income tax liability that results from the federal partnership audit adjustments in accordance with subsection d. of section 8 of P.L.2022,c.133 (C.54:50-47).
c. Failure of the partnership, partner, indirect partner, tiered partner, or member to report or pay federal adjustments that result from the federal partnership audit adjustments shall not prevent the director from assessing a partnership, partner, indirect partner, tiered partner, or member for taxes they owe, using the best information available, if the partnership, partner, indirect partner, tiered partner, or member fails to timely make any report or payment required by this section for any reason.
L.1976, c. 47, s. 54A:5-4, eff. July 8, 1976, operative Aug. 30, 1976; amended 2022, c.133, s.2.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-6 - Husband and wife

54A:5-6. Husband and wife
(a) Separate return. If the income of husband or wife who are both nonresidents of this State and are subject to tax under this act is determined on a separately filed return, their incomes from sources within this State shall be separately determined.
(b) One spouse a nonresident. If either husband or wife is a nonresident and the other a resident, separate taxes shall be determined on their separate incomes on such forms as the director shall prescribe, unless both elect to determine their joint income as if both were residents in which event their tax liabilities shall be joint and several.
(c) The filing requirements for nonresidents shall be governed by the provisions of section 54A:8-3.1 except with respect to the conditions set forth in subsection (b) of this section.
L.1976, c. 47, s. 54A:5-6, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-7 - Allocations of income of nonresidents

54A:5-7. Allocations of income of nonresidents
54A:5-7. Allocations of income of nonresidents. Where a nonresident taxpayer earns, receives or acquires income from sources partly within and partly without this State or engages in a business, trade, profession or occupation partly within and partly without this State, and, as a result thereof or for other reasons that portion of the income from sources within this State cannot readily or accurately be ascertained, the director may by regulation prescribe uniform rules for apportionment or allocation of so much of such taxpayer's income as fairly and equitably represents income, derived from sources within this State and subject to tax under this act.
L.1976, c.47, s. 54A:5-7; amended 1993,c.178,s.2.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-9 - S corporation tax exemption.

54A:5-9 S corporation tax exemption.
11. Except as otherwise provided by P.L.2019, c.320 (C.54A:12-1 et al.), an S corporation as such shall not be subject to the tax imposed by the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., but the S corporation income, dividends, and gain of a shareholder of an S corporation shall be subject to the tax, and the tax shall be imposed on the shareholder's pro rata share, whether or not distributed, of the S corporation income for its taxable year ending within or with the shareholder's taxable year.
L.1993, c.173, s.11; amended 2019, c.320, s.9.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-12 - Limits on shareholder's losses

54A:5-12. Limits on shareholder's losses
14. a. The aggregate amount of losses or deductions of an S corporation taken into account by a shareholder of the S corporation for a taxable period pursuant to section 11 of P.L.1993, c.173 (C.54A:5-9), shall not exceed the shareholder's combined adjusted basis, determined in accordance with section 13 of P.L.1993, c.173 (C.54A:5-11), in the stock of the S corporation and any indebtedness of the S corporation to the shareholder.
b. Any loss or deduction of an S corporation which is disallowed for a taxable period pursuant to subsection a. of this section shall not be treated as incurred by the corporation in any succeeding taxable period with respect to that shareholder.
L.1993,c.173,s.14.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-13 - Shareholder's share of S corporation income prorated for periods of residence

54A:5-13. Shareholder's share of S corporation income prorated for periods of residence
15. For purposes of this act, if a shareholder of an S corporation is both a resident and a nonresident of this State during any taxable year, the shareholder's pro rata share of the S corporation income allocated to this State and S corporation income not allocated to this State for the taxable period shall be further prorated between the shareholder's periods of residence and nonresidence during the taxable period, in accordance with the number of days in each period.
L.1993,c.173,s.15.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-14 - Distributions made by S corporation, treatment

54A:5-14. Distributions made by S corporation, treatment
16. a. Subject to subsection c. of this section, a distribution made by an S corporation with respect to its stock to a resident shareholder shall be taken into account by the shareholder for purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., to the extent that the distribution is treated as a dividend or as gain from the sale or exchange of property in the manner provided by section 1368 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1368.
b. Subject to subsection c. of this section, a distribution of money made by a corporation with respect to its stock to a resident shareholder during a post-termination transition period shall not be taken into account by the shareholder for purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., to the extent the distribution is applied against and reduces the adjusted basis of the stock of the shareholder in the manner provided by section 1371(e) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1371.
c. In applying sections 1368 and 1371(e) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1368 and 1371, to any distribution referred to in subsection a. or b. of this section:
(1) the term "adjusted basis of the stock" means the shareholder's adjusted basis in the stock of the S corporation, as determined under section 13 of P.L.1993, c.173 (C.54A:5-11); and
(2) the term "accumulated adjustments account" means an amount that is equal to, and adjusted in the same manner as, the S corporation's accumulated adjustments account defined in section 1368(e)(1)(A) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1368, except that any modifications required to be made pursuant to the definition of S corporation income shall be taken into account.
L.1993,c.173,s.16.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-15 - Determination of amount of category of income, certain disallowances.

54A:5-15 Determination of amount of category of income, certain disallowances.
2. Notwithstanding the provisions of N.J.S.54A:5-1, if any, or any other law to the contrary, for the purposes of determining the amount of a category of income pursuant to N.J.S.54A:5-1 that is net of expenses, no amounts shall be taken as a deduction pursuant to section 199 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.199, and the deduction of any amounts pursuant to section 199 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.199 shall be disallowed except that this disallowance shall not apply to amounts deducted pursuant to section 199 of the federal Internal Revenue Code of 1986 that are exclusively based upon domestic production gross receipts of the taxpayer or allocable to the taxpayer under that section which are derived only from any lease, rental, license, sale, exchange, or other disposition of qualifying production property which the taxpayer shall demonstrate to the satisfaction of the director was manufactured or produced by the taxpayer in whole or in significant part within the United States but not qualified production property that was grown or extracted by the taxpayer. "Manufactured or produced" as used in this paragraph shall be limited to performance of an operation or series of operations the object of which is to place items of tangible personal property in a form, composition, or character different from that in which they were acquired. The change in form, composition, or character shall be a substantial change, and result in a transformation of property into a different or substantially more usable product.
For tax years beginning after December 31, 2017, notwithstanding the provisions of N.J.S.54A:5-1 or any other law to the contrary, for the purposes of determining the amount of a category of income pursuant to N.J.S.54A:5-1 that is net of expenses, no amounts shall be taken as a deduction pursuant to section 199A of the federal Internal Revenue Code (26 U.S.C. s.199A).
L.2005, c.127, s.2; amended 2018, c.48, s.27.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-16 - Definitions.

54A:5-16 Definitions.
7. a. As used in this section:
"Investment management services" means providing a substantial quantity of any of the following services to a partnership, S corporation, or other entity as a partner thereto:
(1) advising as to the advisability of investing in, purchasing, or selling a specified asset;
(2) managing, acquiring, or disposing of a specified asset;
(3) arranging financing with respect to acquiring specified assets; or
(4) any activity in support of the services described in paragraphs (1) through (3) of this subsection.
A partner shall not be deemed to be providing investment management services under this section if the partnership interest is held directly or indirectly by a corporation, or any capital interest in the partnership, which provides the taxpayer with a right to share in partnership capital commensurate with the amount of capital contributed, determined at the time of receipt of such partnership interest, or the value of partnership interest subject to tax under section 83 of the Internal Revenue Code (26 U.S.C. s.83), upon the receipt or vesting of such interest.
"Specified asset" means certain securities, real estate held for rental or investment, interests in partnerships, commodities, or options or derivatives contracts, except if at least 80 percent of the average fair market value of the specified assets of the partnership, S corporation, or other entity during the taxable year consists of real estate.
b. Notwithstanding the provisions of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., to the contrary, in addition to the tax imposed on the income of a non-resident taxpayer pursuant to N.J.S.54A:5-8, there shall be imposed an additional surtax of 17 percent on income from investment management services received during the taxpayer's taxable year.
c. Notwithstanding the provisions of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., to the contrary, in addition to the tax imposed on the income of a resident taxpayer from the categories of gross income enumerated and classified in N.J.S.54A:5-1 et seq., there shall be imposed an additional surtax of 17 percent on income received during the taxpayer's taxable year from investment management services provided to a partnership, S corporation, or other entity.
d. This section shall remain inoperative until enactment into law by the states of Connecticut, New York, and Massachusetts of legislation having an identical effect with this section, subsection d. of N.J.S.54A:5-8, subsection (D) of section 6 of P.L.1945, c.162 (C.54:10A-6), and section 9 of P.L.2018, c.45 (C.54:10A-6.4), as shall be determined by the Director of the Division of Taxation in the Department of the Treasury.
L.2018, c.45, s.7.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-17 - Cannabis licensees, gross income.

54A:5-17 Cannabis licensees, gross income.
3. a. For cannabis licensees, New Jersey gross income under subsections b. and k. of N.J.S.54A:5-1 shall be determined without regard to section 280E of the Internal Revenue Code (26 U.S.C. s.280E).
b. For purposes of this section, "licensee" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
L.2023, c.50, s.3.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-18 - Regulations.

54A:5-18 Regulations.
4. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the director may adopt, immediately, upon filing with the Office of Administrative Law, regulations that the director deems necessary to implement the provisions of P.L.2023, c.50 (C.54A:5-17 et al.), which regulations shall be effective for a period not to exceed 360 days from the date of the filing. The director may thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
L.2023, c.50, s.4.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:5-19 - Income sourced, Corporation Business Tax Act, New Jersey Gross Income Tax Act, business conducted partly within, without State.

54A:5-19 Income sourced, Corporation Business Tax Act, New Jersey Gross Income Tax Act, business conducted partly within, without State.
13. a. For the purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for taxable years beginning on and after January 1, 2023, notwithstanding any provision in N.J.S.54A:1-1 et seq. or the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) to the contrary, a taxpayer that is subject to the provisions of N.J.S.54A:1-1 et seq. and engages in a trade or business, regardless of business form, or is a partner in a partnership or shareholder of an S corporation, which trade, business, partnership, or S corporation conducts business operations partly within and partly without this State and, as a result thereof or for other reasons that portion of the income from sources within the State cannot readily or accurately be ascertained, the income from the trade, business, partnership, or S corporation shall be sourced in a manner consistent with the provisions of sections 6 through 10 of the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-6 through C.54:10A-10). Income that is representative of the taxpayer's salary, wages, tips, fees, commissions, bonuses, and other remuneration shall be sourced pursuant to the provisions of N.J.S.54A:1-1 et seq.
b. The director shall promulgate rules and regulations necessary to carry out the provisions of this section.
L.2023, c.96, s.13.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-1 - Items in 54A:6-2 to 54A:6-9 excluded

54A:6-1. Items in 54A:6-2 to 54A:6-9 excluded
The items in sections 54A:6-2 to 54A:6-9, inclusive, shall be specifically excluded from gross income.
L.1976, c. 47, s. 54A:6-1, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-2 - Federal social security benefits

54A:6-2. Federal social security benefits
All payments received under the Federal Social Security Act, whether they be regularly monthly benefits or lump sum death benefits.
L.1976, c. 47, s. 54A:6-2, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-3 - Railroad retirement benefits

54A:6-3. Railroad retirement benefits
All payments received under the Railroad Retirement Act administered by the Federal Government.
L.1976, c. 47, s. 54A:6-3, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-4 - Certain death benefits

54A:6-4. Certain death benefits
a. Proceeds of life insurance contracts payable by reason of death.
b. Employees' death benefits, if such amounts are paid by or on behalf of an employer and are paid by reason of the death of the employee.
L.1976, c. 47, s. 54A:6-4, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-5 - Gifts and inheritances

54A:6-5. Gifts and inheritances
a. The value of property acquired by gift, bequest, devise or inheritance.
b. Income. Subsection a. shall not exclude from gross income:
1. The income from any property referred to in subsection a.
2. Where the gift, bequest, devise or inheritance is of income from property, the amount of such income.
L.1976, c. 47, s. 54A:6-5, eff. July 8, 1976, operative Aug. 30, 1976.
2023 New Jersey Revised Statutes › Title 54A - New Jersey Gross Income Tax Act › Section 54A:6-6 - Compensation for injuries or sickness

54A:6-6. Compensation for injuries or sickness
a. Amounts received under workmen's compensation acts as compensation for personal injuries or sickness.
b. The amount of damages received, whether by suit or agreement, on account of personal injuries or sickness.
c. Amounts received through accident or health insurance for personal injuries or sickness.
d. Amounts received as a pension, annuity or similar allowance for personal injuries or sickness resulting from active service in the Armed Forces of the United States or in the Coast and Geodetic Survey or the Public Health Service, or as a disability annuity payable under the Foreign Service Act of 1946.
L.1976, c. 47, s. 54A:6-6, eff. July 8, 1976, operative Aug. 30, 1976.