What are the requirements of the E-File Mandate?
Paid tax preparers that prepare 11 or more New Jersey individual Income Tax resident returns including those filed for trusts and estates during the tax year must use electronic methods to file those returns.
What types of returns are not included?
New Jersey nonresident, part-year resident, amended, and prior year returns are not included in the mandate.
Who is a paid preparer?
Anyone who prepares a return for a fee is considered a paid preparer. The Division of Taxation will use the information provided in the "Paid Preparer" section of the New Jersey Income Tax return to help determine this.
Will the State notify each tax preparer who is required to file electronically?
No. It is the responsibility of the tax preparer to determine if he/she meets the mandate requirement.
Does the mandate apply to tax preparers who are located outside New Jersey?
Yes. The mandate applies to tax preparers who file NJ-1040 or NJ-1041 forms, regardless of where the tax preparer is located.
Does e-filing increase the preparer's liability?
No. A tax preparer who files New Jersey tax returns and/or pays New Jersey taxes on behalf of either an individual or a business client does not become personally responsible for payment of the client's New Jersey tax liabilities.
How do I sign up to file electronically?
There are two electronic options to file your clients' New Jersey resident tax returns:
Do I have to renew the New Jersey E-File Program registration every year?
Once registered with the New Jersey Division of Revenue and Enterprise Services, you do not have to renew your registration as long as you continue to be an approved Electronic Return Originator (ERO) with the IRS.
Where do I find software that supports electronic filing?
Do I pay a fee to file electronically in New Jersey?
There is not a fee to e-file tax returns, regardless of the number of tax returns filed.
What if a tax preparer does not comply with the mandate?
A tax preparer may be assessed a penalty of $50 per return that was not e-filed as required. See N.J.S.A. 54:49-4(b).
Can I choose not to e-file a tax return for a client?
You cannot opt-out. Only taxpayers can choose to not have their tax return e-filed.
What if I have returns that cannot be e-filed?
Most New Jersey Resident Tax Returns (NJ-1040 and NJ-1041) can be e-filed. If you cannot e-file a return, Form NJ-1040-O , the E-File Opt-Out Request Form, must be completed. You should enter a reason for your use of the form. Also, count these returns toward the threshold.
What if my client does not want to have his return electronically filed?
Clients who do not want their tax returns filed electronically can complete an E-File Opt-Out Request Form (Form NJ-1040-O ) so a paper return can be filed for them. You are required to send a copy of Form NJ-1040-O with the paper return, fill in the NJ-1040-O oval or box on the return, and keep a copy of the completed and signed form in your records.
Where is the oval/box that needs to be filled in when you are enclosing Form NJ-1040-O?
The oval/box is located on the tax return near the tax preparer's signature. See the example of the Form NJ-1040 signature block below
Am I required to electronically file Form NJ-630?
You are not required to electronically file Form NJ-630, Application for Extension of Time to File. It may be filed by paper or online.
Be aware that an extension of time to file is not an extension of time to pay the tax due.
Can I e-file a New Jersey tax return if my client has a federal extension?
Yes. New Jersey tax returns can be e-filed when using a federal extension. Please be sure to fill-in the federal extension check-off and, if the application for a federal extension was filed online, enter your confirmation number. For information on the extension filing requirements, visit our website.
Why did I receive a conditional State Acknowledgement for an e-filed return?
A conditional State Acknowledgement is generated when an Electronic Return Originator (ERO) is not registered with the New Jersey Division of Revenue and Enterprise Services. Registration is mandatory for any participant whose business address is outside the State of New Jersey.
I received a rejected return with an error code. How can I determine what the error code means and how to resolve it?
Call the New Jersey Division of Revenue and Enterprise Services at 609-292-8720 to obtain information about error codes.
Is a PIN required to e-file New Jersey Income Tax returns?
New Jersey does not require a PIN when e-filing a New Jersey Income Tax return. Taxpayers with a self-selected Federal PIN or a Tax Practitioner PIN may still use either one.
Does e-file support multiple entries on NJ Schedule NJ-DOP, Net Gains or Income from Disposition of Property? (Schedule B for Tax Years 2017 and prior)?
Tax preparers who complete Schedule NJ-DOP for a client using e-file software or New Jersey Online Income Tax Filling may choose to enter one line of information that summarizes all of their client's transactions. Simply enter "various" or "see attached" to describe the kind of property and enter the sum of all transactions in the appropriate fields. The tax preparer must keep a copy of the attachments in their files.
How quickly will my clients get their refunds when I e-file their tax return?
You can expect to obtain the status of your client's return three weeks after the date of submission. Occasionally, additional information may be required to ensure the accuracy of entries made on the return. In these cases, the filer is notified and the refund is processed as quickly as possible upon receipt of the supporting information.
If the taxpayer has a balance due, can I still e-file their tax return?
The Joint Federal/State Electronic Filing Program and New Jersey Online Income Tax Filling allow for returns to be completed and transmitted early in the tax season while making provisions to provide payment at a later date.
Payments can be made in one of three ways:
Should I have my clients complete a signature document?
The State of New Jersey does not require the use of signature documents for e-filed New Jersey Income Tax returns.
Does e-filing prevent my clients from viewing their returns prior to submission?
Electronic filing does not prevent the review of a completed return prior to submission. Taxpayers should carefully review their returns prior to sending them to the Division. This includes returns completed by a paid preparer.
How can I show my clients the benefits of filing electronically?
If you are required to e-file, you can post this sign to inform your clients of your e-file requirement.
Are electronic filing fees that I charge subject to Sales Tax?
Electronic filing fees are not subject to Sales Tax if included in your full invoice for a return you prepared. The fees are treated as part of the exempt professional service. Tax preparers may state that the fee for electronic filing is included in the service charge. For example, "This invoice includes $XX for electronically filing your return."
Will I be notified of changes to the E-File Mandate?
If you would like to receive email messages concerning the E-File Mandate or other tax matters, register for E-News