topic NJ-1041 needed or not? in State tax filing

NJ-1041 needed or not?

deeMatrix — Tue, 24 Feb 2026 01:18:46 GMT

My father-in-law's Estate realized $2,800 in income which was distributed to 4 beneficiaries via K-1s and the Federal IRS form 1041 form was recently submitted and Estate closed.

The income distribution from the K-1 for my wife was entered in our 1040 form and shows up on both the federal and NJ taxes as income.

The Estate NJ-1041 instruction form says a NJ-1041 is only required if the gross income for the Estate, before deductions and exemptions, is greater than $10,000. As such, since the Estate only realized $2,800 in total income I wish to confirm there is no need for us to file a NJ-1041 in closing the Estate?

Thanks in advance for any perspectives.

Re: NJ-1041 needed or not?

KrisD15 — Tue, 14 Mar 2023 03:06:41 GMT

The 10,000 is prorated, so it would depend on the date of death.

According to the State of New Jersey:

“The fiduciary of every resident estate or trust must file a New Jersey Gross Income Tax Fiduciary Return (Form NJ-1041) if gross income, before exemptions or deductions, was more than $10,000 (prorated for the number of months covered by a part-year return) during the tax year. “

NJ-1041

Re: NJ-1041 needed or not?

deeMatrix — Tue, 14 Mar 2023 03:13:23 GMT

My FIL passed on Thanksgiving 11/25/2021 but no income was generated at all in 2021 and then only $2,800 in 2022. The Estate was closed in 2022. So then if I'm understanding this correctly we should be ok?

Thanks in advance.

Re: NJ-1041 needed or not?

KrisD15 — Tue, 14 Mar 2023 03:26:25 GMT

Yes, you should be fine not filing for NJ.

Very sorry for your loss.

Re: NJ-1041 needed or not?

deeMatrix — Tue, 14 Mar 2023 15:01:44 GMT

Thanks KrisD15. Much appreciated.

deeMatrix

Re: NJ-1041 needed or not?

deeMatrix — Tue, 14 Mar 2023 15:40:19 GMT

One last question though.

In reading the NJ-1041 form instructions info outlined below does this mean we still need to file NJ-1041?

The fiduciary of every resident estate or trust must file a New Jersey Gross Income Tax Fiduciary Return (Form
NJ-1041) if gross income, before exemptions or deductions, was more than $10,000 (prorated for the number of months covered by a part-year return) during the tax year.

A resident estate or trust is not subject to New Jersey tax if it:
• Does not have any tangible assets in New Jersey;
• Does not have any income from New Jersey sources; and
• Does not have any trustees or executors in New Jersey.

However, the fiduciary must file Form NJ-1041 for such
estate or trust, enclose a statement certifying that the
estate or trust is not subject to tax, and check the box on line 27.

Confusing as not sure if the initial $10,000 requirement supersedes this or do we still need to file since had some income and executor is in NJ?

deeMatrix

Re: NJ-1041 needed or not?

PatriciaV — Tue, 14 Mar 2023 15:56:32 GMT

No, because the rules are listed in order. If you have less than $10,000 of gross income, you are not required to file. However, if the trust income is over $10K, but one of the subsequent tax exclusions applies, you must file to report the income is not subject to New Jersey tax.

Bottom line: If trust gross income is less than $10,000, no NJ trust return is required.