CBT-160-A: Underpayment of Estimated Corporation Business Tax on Gross Receipts of less than $50 million (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
New Jersey Form CBT-160-A helps corporations with total gross receipts of less than $50 million determine whether they underpaid estimated Corporation Business Tax. It calculates installment underpayments, checks exceptions to interest charges, and figures any installment interes
Who files this form
Corporations with total gross receipts of less than $50 million should use Form CBT-160-A. This includes separate and combined filers.
Use the form to check whether you paid enough estimated Corporation Business Tax and whether you owe interest for an underpayment. Submit it with Form CBT-100, CBT-100S, or CBT-100U if you use it to calculate underpayment interest or claim an exception.
When it's due
For tax year 2024:
- Estimated tax installment dates are the 15th day of the fourth, sixth, ninth, and 12th months of your tax year.
- Underpayment interest runs from the installment due date to the payment date or the 15th day of the fifth month after the close of the tax year, whichever is earlier.
Submit CBT-160-A with your tax return. The form does not print a separate filing deadline for CBT-160-A.
What you'll need
Have these returns and payment details available:
- Your 2024 CBT-100, CBT-100S, or CBT-100U. Line 1 uses page 1, line 6 of CBT-100, line 4 of CBT-100S, or line 5 of CBT-100U.
- Your 2023 return. Line 3 uses the same corresponding tax lines from that return.
- Estimated tax payment and credit amounts for each installment period, along with payment dates.
- Your name as shown on the return, Federal ID Number, and Unitary ID Number, if applicable.
If you claim an exception, you will also need the prior-year return information or the tax information for the months used in the annualized-tax calculation.
How to file
- Complete Part I, lines 1 through 9, to check each installment period for an underpayment.
- If line 9 shows an underpayment, complete Part II to see whether an exception applies.
- If neither exception applies to a payment period, complete Part III to calculate interest.
- Enter the total interest from line 18 on page 1, line 12 of CBT-100 or CBT-100S, or page 1, line 14 of CBT-100U.
- Submit CBT-160-A with your CBT-100, CBT-100S, or CBT-100U when calculating interest or claiming an exception.
Banking and financial corporations are subject to electronic filing requirements for all tax filings and payments for privilege periods ending on and after July 31, 2023. The instructions direct these corporations to the Division’s website for more information.
No mailing address for filing this form is printed in the supplied text.
Common mistakes
- Carrying forward too much overpayment. On line 7b, use only the previous installment’s overpayment that exceeds the total of all earlier underpayments.
- Using a short prior-year return without annualizing it. For Exception I, divide taxable net income by the number of whole months in the short period and multiply by 12.
- Treating a partial month as interest-free. A part of a month counts as a full month when calculating interest.
- Combining multiple payments into one interest calculation. If you made more than one payment for an installment, include a separate computation for that installment.
- Ignoring interest-rate changes. Changes in the average predominant prime rate must be reflected in the interest calculation.
Questions people ask
Does an underpayment always mean I owe interest?
No. Part II provides two exceptions. For a payment period, timely payments on line 10 must equal or exceed the applicable amount calculated on line 11 or line 12.
What are the two exceptions?
Exception I uses the facts and applicable law from the prior-year return, but current-year tax rates. Exception II uses annualized tax for the months preceding an installment date.
What interest rate applies?
The annual rate is 3% above the average predominant prime rate. Interest applies for each month or part of a month the underpayment exists. The Division publishes its assessed interest rates on its website.
What if my underpayment results from the Corporate Transit Fee?
The instructions say no penalties or interest will be imposed on an underpayment resulting from the Corporate Transit Fee during its first year of enactment. If you are charged, contact the Division in writing at the address listed in the notice and request an abatement due to the law change.