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Division of Taxation

COVID-19 Related Tax Information
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Important Information About Retail COVID-19 Fees and Sales Tax

Partnership Registration

Form NJ 1065

  • For New Jersey Gross Income Tax purposes, every partnership or limited liability company (LLC 1065) 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. A filing fee per partner may be imposed on the partnership. The fee is reported on Form NJ-1065;
  • For calendar year businesses, returns are due April 15th; 
  • For fiscal year businesses, returns are due the 15th day of the fourth month after the end of the tax year;
  • Any short period return must be filed by the due date of the federal Form 1065. The partnership should use the most current form available from the Division of Taxation. 

Partnership Filing Fee Reporting on NJ 1065

  • Partnerships with more than two partners and income or loss from New Jersey sources may be subject to a $150 filing fee for each partner ($250,000 maximum for each); 
  • A partner is an individual, estate, trust, or other entity (includes each partner receiving a K-1 or having an ownership interest at any point during the year);
  • Partners having both general and limited partnership interest shall be counted twice when determining the total partnership fee owed;
  • The fee is due on or before the 15th day of the 4th month following the end of the partnership's tax year;
  • Tiered partnerships - each partnership pays the filing fees required for its partners;
  • The filing fee can be allocated for nonresident partners who do not have physical nexus with New Jersey. You must complete Schedule J of the NJ-1065 to claim an apportioned filing fee;
  • The filing fee is due on or before the 15th day of the fourth month following the close of each privilege period. We also require an installment payment equal to 50% of the current year’s filing fee at the same time;
  • Partnership Forms are available on our Partnership Forms page.

NJ-1065 Extension

  • If a five-month extension is obtained for filing federal Form 1065, then an automatic five-month extension is granted for submitting your Form NJ-1065. A copy of your federal Form 7004 must be filed with your New Jersey return. Check the box labeled “Application for federal Extension is attached” at the top of Form NJ-1065;
  • If you did not obtain a federal extension and you need more time to file your New Jersey Form NJ-1065, federal Form 7004 must be submitted as your request to New Jersey on or before the original due date of the return;
  • Any partnership that has a filing fee due must file Form PART-200-T, Partnership Application for Extension of Time to File NJ-1065. The applicable payment must accompany this form. Form PART-200-T must be postmarked on or before the original due date for the return. See specific instructions found on back of Form PART-200-T.

NOTE: There is no extension of time to pay the fee due. Penalties and interest are imposed whenever the fee is paid after the original due date. A five-month extension of time to file your Form NJ-1065, New Jersey Partnership Return, may be granted if at least 80% of the total fee reported on your Form NJ-1065 when filed is paid in the form of an installment payment or other payment made by the original due date.

All Partnership Filers are Required to Remit Tax Except:

  • Partnerships listed on a United States National Stock Exchange;
  • Investment Clubs;
  • Qualified Investment Partnerships: (1) a partnership that has more than 10 members or partners; partnership with no member or partner owning more than a 50% interest; and (2) at least 90% of income is derived from investment income; and (3) a "dealer in securities" (as defined by Sec 1236 IRC) cannot be included.

Partnership Filing Fee Waived For Investment Clubs Below $60,000

  • Investment clubs are usually small groups of individuals who pool their money to invest in stock or other securities for enjoyment, learning or investment growth. The club often operates informally with members pledging to pay a regular amount into the club monthly. Some clubs have a committee that gathers information on securities, selects the most promising securities, and recommends that the club invest in them. Most clubs require all members to vote for or against all investments, sales trades, and the other transactions. All members of an investment club must be individuals;
  • Treasury will waive the $150 tax form processing fee for investment clubs with fewer than $60,000 in shared capital assets;
  • The $60,000 in shared assets is based on an average quarterly cost or market value;
  • If an investment club meets the following criteria, it will be exempt from the $150 per owner annual partnership filing fee and from the requirement that a partnership make payments on behalf of its nonresident owners:
    • The investment club must be an entity that is classified as a partnership for federal income tax purposes, all of the owners are individuals, and all of the assets are securities, cash, or cash equivalents;
    • The market value of the total assets do not exceed, as measured on the last day of its privilege period, an amount equal to the lesser of $352,700 or $49,400 per owner of the entity;
    • The investment club is not required to register itself or its membership interests with the federal Securities and Exchange Commission.
  • In addition to stating that the partnership is an investment club in the Principal Business Activity Box of Form NJ-1065, the box indicating that it is an investment club must also be marked.

Form NJ-CBT-1065 for Nonresident Partner Tax Payment

Partnerships must remit payments of tax on nonresident partner's share of New Jersey income. For tax years beginning on or after January 1, 2002 (NOTE: different rules apply for tax payments for years beginning on and after January 1, 2001 and before January 1, 2002):
  • For calendar year businesses, the due date is April 15th;
  • Payment is credited to the nonresident partner's Income Tax liability as of the date the Division receives the tax from the partnership entity;
  • Payment made by partnership on behalf of the nonresident partner does not relieve the nonresident partner of their requirement for making estimated or installment payments;
  • The tax paid by the partnership can be claimed by the nonresident partner on the New Jersey Non-resident tax return (NJ-1040NR) by attaching a copy of the NJ-K1;
  • The New Jersey source amount in the distributive share of partnership income/loss in Column F of the Partners Directory may differ from the nonresident partner's share of New Jersey income in Column I;
  • Fiscal filers - will receive credit when the tax payment is received;
  • Tiered partnership - Schedule T must be completed if the entity is claiming credit for tax remitted on its behalf by another entity. The Name, Federal EIN, and Share of New Jersey Tax reported on Line 1 of Part III of each Schedule NJK-1 must be reported. Failure to complete Schedule T in its entirety may result in no credit;
  • Partnerships are required to make installment payments of estimated tax. Partnerships that are subject to tax payments shall make installment payments of 25% of that tax on or before the 15th day of each of the fourth month, sixth month, and ninth month of the privilege period and on or before the 15th day of the first month succeeding the close of the privilege period.

Extension for Form NJ-CBT-1065

  • If a five-month extension is obtained for filing federal Form 1065, then an automatic five-month extension is granted for submitting your Form NJ-CBT-1065. A copy of your federal Form 7004 must be filed with your New Jersey return. Check the box labeled “Application for Federal Extension is attached” at the top of Form NJ-CBT-1065;
  • If you did not obtain a federal extension and you need more time to file your New Jersey Form NJ-CBT-1065, federal Form 7004 must be submitted as your request to New Jersey on or before the original due date of the return;
  • Any partnership that has a tax due must file Form CBT-206, Partnership Application for Extension of Time to File NJ-CBT-1065. The applicable payment must accompany this form. Form CBT-206 must be postmarked on or before the original due date for the return. See specific instructions found on back of Form CBT-206;
  • A five-month extension of time to file your Form NJ-CBT-1065, New Jersey Partnership Return, may be granted if at least 90% of the total tax reported on your Form NJ-CBT-1065 when filed is paid in the form of a tiered partnership payment, estimated payment(s), or other payment(s) made by the original due date.

NOTE: There is no extension of time to pay the tax due. Penalties and interest are imposed whenever the tax is paid after the original due date.

Estimated Payments for Form NJ-CBT-1065

  • Estimated payments must be filed and paid electronically;
  • Partnerships are not to file Form CBT-150, Corporation Business Tax Statement of Estimated Tax. Form CBT-150 is a Corporation Business Tax form, not a partnership form;
  • For calendar year businesses, returns are due April 15th;
  • For fiscal year businesses, returns are due the 15th day of the fourth month after the end of the tax year;
  • Any short period return must be filed by the due date of the federal Form 1065. The partnership should use the most current form available from the Division of Taxation.

NJ-CBT-1065 Tax Calculation/Rates

  • Tax calculated on all New Jersey allocated income of nonresident non-corporate partners (individual, estates and trusts) and nonresident corporate partners (including partnerships that are partners);
  • Allocation rules pursuant to the Corporation Business Tax apply N.J.S.A. 54: 10A-6 (i.e. double weight the receipts fraction);
  • Partnership determines the tax for the nonresident non-corporate partners in accordance with the highest rate for New Jersey Gross Income Tax purposes (6.37% rate), unless hedge fund status is met (see below);
  • Partnership determines the tax for the nonresident corporate partners at the 9% corporate rate, unless they maintain a regular place of business in New Jersey or they are an exempt corporation (N.J.S.A. 54:10A-3).

Partnerships that meet Hedge Fund Status

  • Partnerships meeting "hedge fund" status under N.J.S.A. 54A:5-8(c) are not required to remit tax payments on behalf of nonresident non-corporate partners;
  • What qualifies as a hedge fund? - see the instructions to the NJ-1065;
  • The entity–not the partner–must make the determination of hedge fund status.

Partnership Dissolution

  • 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;
  • Partnership is required to pay the $150/partner filing fee for the year of the final return. The fee may not be prorated if the period is shorter than a year;
  • Indicating “Final Return” does not dissolve the business. Visit The Division of Revenue for information on closing a business.

Electronic Filing

  • Partnerships subject to the provisions of the Corporation Business Tax that utilize the services of a paid preparer must file all their partnership returns and payments by electronic means;
  • Partnerships that have 10 or more partners must also file all returns electronically, regardless of whether or not they utilize the service of a paid tax preparer;
  • For more information on electronic filing and payments, visit the Division of Revenue’s Partnership Filings page or email the Division of Revenue and Enterprise Services at e-GovServices@treas.nj.gov.
  • NJ-1065 filers that have less than ten partners have the option to file and make payment by electronic means or on paper.

Partner’s Gross Income Tax Responsibility

  • Partners subject to the Gross Income Tax still must report and pay tax on their share of partnership income or loss. Resident partners should file the Income Tax Form NJ-1040 to report their share of partnership income. Nonresident partners should file Form NJ-1040NR to report their income and to claim the Share of Tax Paid on Your Behalf by Partnership.

For More Information

  • Technical Bulletin TB-55, Partnership Filing Fee and Nonresident Partner Tax
  • See Regulations.

Last Updated: Friday, 08/07/20