Date: September 5, 2024Attorney: Martin D. Hauptman
The New Jersey Division of Taxation has issued detailed instructions for reporting discrepancies between federal and state tax documents from lower-tier partnerships on the 2023 NJ-1065. This guidance is crucial for reconciling federal K-1s with NJK-1s.
For the 2023 NJ-1065, taxpayers should use Lines 13b and 15e to address differences:
- Line 13b should be used to report any state income additions if the net NJK-1 amounts from the lower-tier partnerships exceed the federal K-1 amounts. This line captures state additions to income that were not reflected elsewhere on the form.
- Line 15e should be used to report state income deductions if the net NJK-1 amounts are less than the federal K-1 amounts. This ensures that deductions are accurately represented in line with state reporting requirements.
To complete the NJ-1065 correctly, compare the federal K-1s and NJK-1s, calculate the differences, and enter them on the appropriate lines.
For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com