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Data entry for a partnership K-1

New Jersey law requires that pass-through entities supply a New Jersey Schedule K-1 showing the income calculated under New Jersey law and it be reported on the individual's New Jersey return.
If a partner has a New Jersey Schedule K-1 from a partnership and the 1065 return was prepared in UltraTax CS, the New Jersey information will data share into the individual New Jersey return. If the New Jersey Schedule K-1 wasn't prepared in UltraTax CS, enter the data as follows:
  • Part II, Box 4A -
    If the taxpayer is a resident of New Jersey, enter the Total Distributive Share of Partnership income (line 4, column A) on the federal
    K1-2
     screen in the
    Ordinary business income (loss) - State, if different
    field. If the K-1 is coded to a state other than New Jersey (based on the
    State postal code
    ), use the NJ column in the Allocation grid instead. If the taxpayer is a part-year or nonresident of New Jersey, enter this amount on the federal
    K1St
     screen in the
    Ordinary income everywhere
    field. If the K-1 is multi-state, multiple screens of
    K1St
     screen will exist. Verify that the ordinary income amount is entered on the NJ unit.
  • Part II, Box 4B -
    If the taxpayer is a resident of New Jersey, amounts in column B will be the same as column A and no additional data entry is required for column B amounts. For part-year and nonresidents, enter the New Jersey source amount on the
    K1-2
     screen in the
    Ordinary business income (loss) - State, if different
     field. If the K-1 is coded to a state other than New Jersey (based on the
    State postal code
    ), use the NJ column in the Allocation grid instead.
  • Part II, Box 5A -
    If there's an amount for Pension in Box 5A, the taxpayer should've received an Form 1099R as well. Enter this amount in the
    Gross distribution
     field on the federal
    1099R
     screen in the
    Retirement
     folder.
  • Part II, Box 6A -
    When an amount is in this box, there's a gain or loss from a sale of partnership and the federal K1 unit should be marked as disposed of on the
    K1-2
     screen. Use the federal
    Sale
     screen or the Schedule for detail statement on the federal
    B&D
     screen to enter the gain and any other relevant sale information.
  • Part II, Box 6B -
    When the New Jersey source of gain or loss from sale of partnership is different than the federal, use the Statement for detail on the federal
    B&D
     screen to enter the sale. This statement will allow you to split the sale on multiple lines. Enter the portion that is NJ source on 1 line with
    State
     code NJ, and the
    Form
     and
    Unit
     field coded to the proper unit of the K1. On a new line within the statement, enter the rest of the sale without a
    State
     code (or different state) so that the federal return reports the full amount of the gain or loss.
  • Part III, Box 1 -
    Enter the nonresident partner's share of NJ tax on the federal
    K1-4
     screen in the
    State income tax withheld - State, if different
     field. If the K-1 is coded to a state other than New Jersey (based on the
    State postal code
    ), use the NJ column in the Allocation grid instead.
  • Part III, Box 2 -
    Enter the partner's HEZ deduction on the
    NJAdj-2
     screen in the
    Health enterprise zone deduction
     field. Note that this amount is the total amount and not a "per K-1" amount.
  • Part III, Box 3 -
    Enter the partner's sheltered workshop tax credit on the
    NJCr
     screen in the
    Credits
     folder. Note that this is also a total amount and not a "per K-1" amount.
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