What is the definition of New Jersey sources when entering income allocations

New Jersey nonresident income would be state source income.  In general, interest, dividends and capital gains are allocated to your resident state (unless the capital gain is from New Jersey property).

But what is income from “NJ sources” ? How is that different from income from all sources?

Source income means the money you earned in New Jersey. This would include the money earned while you were a resident of New Jersey and any income earned in New Jersey after you moved. 

@jdominic

I think I get the first part of you response, income earned while I resided in NJ? I don’t follow the second part of your response, “income earned in NJ after I moved”? Some background on my residency situation. I went through the process to officially declare domicile in Florida in 2020. But I still had a residence in NJ a in 2021. I spent less than 180 days (not contiguously) in NJ going back and forth from Florida. Does NJ sourced income mean income received for the days I resided in NJ only?  

I guess my hang up is on the statement “income from New Jersey sources.” I have read lots of the NJ tax instructions and “NJ sources” is never defined in detail.  My assumption is it means income from any source for the days I resided in NJ. But they way it’s written, one can interpret that statement being from income from a NJ employer. 

Sourced income earned in NJ after you moved would be income earned in New Jersey during your nonresident period. For example - if a taxpayer moved from NJ to NY on 6/30/21, but continued to work in NJ, the amount of income earned 7/1 and on would be sourced income from NJ earned as a nonresident of NJ (resident of NY). 

¶16-505, Income Attributable to State Sources state that nonresidents that derive income from New Jersey sources are generally subject to gross income tax on the same categories of income as residents, ( Sec. 54A:5-8(a), R.S. ; Instructions, Form NJ-1040NR, New Jersey Non-Resident Income Tax Return) including:

• Wages, salaries, tips, fees, commissions, bonuses, and other remuneration for services performed in the state;
• Interest and dividend income received as a result of a business or profession carried on in the state and not reportable as net profits from business, distributive share of partnership income, net income from estates or trusts, or net pro rata share of S corporation income;
• Net profits from a business, trade, or profession that is carried on inside the state;
• Net gains or income from disposition of tangible or intangible property in the state;
• Net gains or income from rents, royalties, patents, and copyrights ;
• Net gambling winnings from state sources other than the New Jersey State Lottery;
• The distributive share of partnership income from state sources; and
• The pro rata share of S corporation income attributable to state sources.

@jdominic