CBT-160-P: Underpayment of Estimated N.J. Partnership Tax (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form CBT-160-P helps partnerships determine whether they paid enough estimated New Jersey partnership tax for 2024 and calculate any interest due on underpayments. It also documents exceptions to the underpayment interest charge and is attached to Form NJ-CBT-1065 when used to ca
Who files this form
Partnerships use CBT-160-P to check whether they paid enough estimated New Jersey partnership tax and to calculate any interest for underpayment.
Attach CBT-160-P to Form NJ-CBT-1065 if you use it to calculate underpayment interest or to show that you qualify for an exception.
When it's due
For tax year 2024, the form lists estimated-tax installment dates as the 15th day of:
- The fourth month of your tax period.
- The sixth month of your tax period.
- The ninth month of your tax period.
- The first month after your tax period ends.
For the 2024 interest calculation, line 15 uses the payment date or the 15th day of the fourth month after the tax year ends, whichever is earlier.
What you'll need
Have these returns and details available:
- Your partnership name and federal EIN.
- Your 2024 Form NJ-CBT-1065, including the tax amount on line 4.
- Your 2023 Form NJ-CBT-1065, including line 4 for the prior-year tax amount.
- Estimated-tax amounts paid or credited for each payment period and the payment dates.
- Prior-year return facts or tax information for the applicable annualization periods, if claiming an exception.
If you made more than one payment for an installment, attach a separate calculation for that installment.
How to file
- Complete Part I, lines 1 through 9, to check for an underpayment in each payment period.
- If line 9 shows an underpayment, complete Part II to check whether an exception applies.
- If neither exception applies to a payment period, complete Part III to calculate interest.
- Add the interest from all four columns on line 17. Enter the total on line 18 and include it on line 5 of Form NJ-CBT-1065.
- Attach CBT-160-P to your NJ-CBT-1065 when using it to calculate interest or claim an exception.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Skipping Part II when an exception applies. The form specifically says to complete Part II if you meet an exception that avoids the underpayment charge for any quarter.
- Leaving out a separate installment calculation. Attach one if you made more than one payment for that installment.
- Ignoring partial months when calculating interest. A part of a month counts as a full month.
- Using an unchanged interest rate when the rate changes. The instructions require changes in the average predominant prime rate to be reflected in the calculation.
Questions people ask
Does an underpayment always mean I owe interest?
No. You do not owe interest for a payment period if your payments were made on time and meet or exceed either exception amount for that period.
What are the two exceptions?
One uses the facts and law from the prior year's return with current-year rates. The other uses annualized tax and a 90% standard, as described in the instructions.
What if my prior-year return covered less than a year?
For the prior-year-return exception, annualize taxable net income by dividing it by the number of whole months covered by the short-period return and multiplying by 12.
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, and rate changes must be reflected. The instructions link to the Division's published rates at this interest-rate publication.