State Return: Business Income - Adjustments

Forum|Forum|3 years ago
March 31, 2023
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In NJ state return, under Business and Farm Income - Adjustments, it says "to adjust this income to confirm to NJ tax law, enter the following additions: Amount deducted for taxes based on income, Qualified contributions to a self-employed 401(k) plan", etc. Why does this information not pull from the federal return? Where do I obtain this information to input here?

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Best answer by AliciaP1

Since NJ does not treat these items as an allowable business deduction, the question is asked to ensure you don't have something entered in a different place than the specifically identified areas that needs to be adjusted. If you entered your SEP contributions in the self-employed retirement section you do not need to enter any adjustments for these items.

@grizz2

MarilynG

Level 15

Did you subtract Federal business expenses for:

income taxes
interest received from other states
401 contributions (retirement savings)
IRS section 199

If you didn't have these expenses (I'd be surprised if you did), enter 0 for each category (or leave blank).

Here's more info on New Jersey Business Adjustments.

@grizz2

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grizz2Author

Level 4

@MarilynG, I did contribute to SEP but I didn't subtract it as an expense. Under what circumstance would that occur? I just don't understand why this question would be asked.

Thanks for your time!