All business entities that qualify for and elect to be treated as partnerships for Federal income tax are treated as partnerships for New Jersey Gross Income Tax purposes.
For New Jersey Gross Income Tax purposes, every partnership or limited liability company (LLC) that has income from sources in the State of New Jersey, or has a New Jersey resident partner, must file the New Jersey Partnership return, Form NJ-1065.
Form NJ-1065 is no longer solely an information return. Form NJ-1065 must be filed by a partnership even if its principal place of business is outside New Jersey. Tax may be required to be remitted on behalf of nonresident partners. Tax is imposed on the partners on income and gains derived from a partnership. Income and gains derived from a partnership are taxed whether or not they are actually distributed.
More information is available regarding the reporting of partnership income in publication GIT-9P [pdf 192k], Income From Partnerships, as well as Technical Bulletin TB-55 [pdf 22k], Partnership Filing Fee and Nonresident Partner Tax.
For more information on Single Member Limited Liability Companies, see the Winter 1998 issue of the State Tax News [pdf 1.06m], page 24.
Effective for tax years beginning on or after January 1, 2002, each entity classified as a partnership for Federal income tax purposes that has any income or losses derived from New Jersey sources and that has more than two owners is required to pay a $150 filing fee for each owner of an interest in the entity, up to a maximum of $250,000. Each partnership required to pay a filing fee must also make an installment payment (prepayment) of its filing fee for the succeeding return period. The prepayment is 50% of the filing fee amount required to be paid with the return being filed. Both the filing fee for the tax year and the installment payment are due on or before the 15th day of the fourth month following the close of the return period.
EXCEPTION: A partnership that indicates it is filing a "Final Return" (Form NJ-1065) is not required to make the 50% installment payment (prepayment) of the partnership filing fee for the next year. In this case the partnership is required to pay only the filing fee for the year of the final return. For example: When a partnership that is required to pay the filing fee for its five partners indicates it is submitting a "Final Return" (Form NJ-1065) for 2002, it must pay a $750 partnership filing fee for 2002, but it does not have to make the $375 installment payment for 2003 that would otherwise be required.
File Form NJ 1065 and partnership payments online
