Instructions For Form Nj-1080-C - Income Tax - Nonresident Composite Return

2012 COMPOSITE RETURN INSTRUCTIONS

Qualified nonresident individuals who are members of general and limited partnerships, professional athletic teams, limited liability

partnerships, limited liability companies, New Jersey electing S corporations, estates and trusts may participate in a composite return. A

composite return, Form 1080C, must be paper-filed. The directory information for a composite return filed on behalf of 25 or more

participants MUST be submitted on diskette or re-writable CD. General diskette specifications can be found beginning on page 6.

For tax year 2012, the NJ-1080C return uses two tax rates - 6.37% and 8.97%.

Individual participants with income of less than $250,000, from the entity preparing and filing the composite NJ-1080C return, are listed

on Schedule A - Participant Directory - Total Income Less than $250,000. The addition of the Taxable Income amounts for all the

participants on Schedule A is carried over to the appropriate line(s) 8 through 16, Column A. The tax rate to be used on Schedule A and on

line 18 of Column A on the front of the return is 6.37%.

Individual participants with income greater than or equal to $250,000, from the entity preparing and filing the composite NJ-1080C

return, are listed on Schedule B - Participant Directory - Total Income Greater than or Equal to $250,000. The addition of the Taxable Income

amounts for all the participants on Schedule B is carried over to the appropriate line(s) 8 through 16, Column B. The tax rate to be used on

Schedule B and on line 18 of Column B on the front of the return is 8.97%.

composite return. The lists must include each member’s name,

Only individuals are eligible to file as part of a composite

address and Federal Identification Number.

return.

To qualify for participation in a composite return the

nonresident must be a member of one of the specified entities and

satisfy all of the following conditions:

PERMISSION TO FILE NOT REQUIRED

In previous years, the Division accepted composite returns only

1. The individual was a nonresident for the entire taxable year;

when written permission had been requested by the filing entity and

a copy of the permission letter was attached to the composite return

2. The individual did not maintain a permanent place of abode in

when filed. Written permission to file a composite return is not

New Jersey at any time during the taxable year;

required. Any entity which is eligible to file a composite return may

3. The individual was not a fiscal year filer;

now do so without first putting the Division on notice.

4. The individual did not have income derived from or connected

WHEN TO FILE

with New Jersey sources other than the income reported on

Returns for calendar year 2012 are due April 15, 2013. No

composite return(s);

fiscal composite returns will be accepted.

5. The individual waives the right to claim any New Jersey

POSTMARK DATE

personal exemption, credit or deduction and agrees to have the

All New Jersey income tax returns postmarked on or before the

tax calculated directly on such income at the appropriate tax

due date of the return are considered to be filed on time. Tax returns

rate in effect for composite return participants for the tax year;

postmarked after the due date are considered to be filed late. When

and

a return is postmarked after the due date, the filing date for that

6. The individual elects to be included in a composite return by

return is the date the return was received by the Division, not the

completing and delivering to the filing entity a Form NJ-1080-

postmark date of the return.

E (Election to be Included in a Composite Return) prior to the

EXTENSION OF TIME TO FILE

filing of the composite return by the entity.

An extension of time to file will be granted on a composite

An individual may participate in other New Jersey gross

basis only. The request for an extension of time to file must be made

income tax composite returns, providing that the requirements of

on Form NJ-630, on or before the original due date of the return.

subsections 1 through 6 above, are satisfied. Once a nonresident

The request must be made under the filing entity’s Federal

elects to participate in a composite return the election is binding on

Identification Number. A six month extension of time to file the NJ-

the individual’s heirs, representatives, assigns, successors, executors

1080-C will be granted if at least 80% of the actual tax liability is

and administrators and constitutes an express consent to personal

paid in the form of estimated or other payments by the original due

jurisdiction in New Jersey for New Jersey personal income tax

date of the return.

purposes.

Taxpayers who file Form NJ-630 will not receive an approved

copy. The Division will only send notification if the request for

ELECTION TO PARTICIPATE

extension is denied.

Every participating member must make the election to be part

If the requirements for extension are not satisfied, or if the

of the composite return in writing each year by filing Form NJ-1080-

return is not filed by the extended due date, the extension will be

E with the filing entity. The elections must be maintained in the

denied and penalties and interest will be imposed from the

filing entity’s files. When filed, the composite return must include

original due date of the return.

See “Penalty and Interest

lists of the members who are participating, as well as lists of those

Charges” on page 2.

who have not elected, or are not qualified, to participate in the

Instructions For Form Nj-1080-C - Income Tax - Nonresident Composite Return - 2012

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