Business & farm
But I own a NY S corporation and if I understand correctly I have to report that on my NJ return
On NJ Taxes NJ-1040 Line 22 I have to report net pro rata share of S corp income, this is still taxable income, isn't?
I check box 2 since I have not received a NJ-K-1 form and my Federal K-1 information is inserted.
This is Q/A from a website which exactly illustrates my situation: S Corporation Q&A:
Q: "Assume a New Jersey resident is a 100% shareholder of a Federal and New York State S
corporation. This corporation does not do business in New Jersey, and currently does not and is
not required to file a New Jersey corporation business tax return. Does the resident share-
holder report the S corporation income (flow through items) on his New Jersey income tax
return (NJ-1040)? Is the resident shareholder required to file a New Jersey S corporation
election?
A: "The resident shareholder is required to report on his NJ-1040 his pro rata share of the Federal S
corporations income not allocated to New Jersey. The shareholder is not required to file a New
Jersey S corporation election."
Question: Should I mark the box " Check this box if this is a non-electing S corporation in NJ" or leave it blank? How do i take credit on my NJ-1040 return for the amount on my K-1reported and paid on my NY part year resident return? Thank you.
