NJ-1080E: Election to Participate in a Composite Return (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form NJ-1080E records an eligible nonresident individual's annual election to participate in a New Jersey Nonresident Composite Return (Form NJ-1080-C). It identifies the filing entity and participant and records the participant's consent to include their New Jersey-source income
Who files this form
Form NJ-1080E is for a qualified nonresident individual who elects to have New Jersey-source income included in an entity’s composite return, Form NJ-1080-C. Participation is an election, not a requirement for every nonresident.
Eligible filing entities include partnerships, LLCs, LLPs, New Jersey electing S corporations, estates, trusts, and professional athletic teams with New Jersey activities or income.
To participate for 2024, you must meet all of these conditions:
- You were a New Jersey nonresident for the entire year.
- You did not maintain a permanent place of abode in New Jersey at any time during the year.
- You do not file a fiscal-year federal income tax return.
- Your only New Jersey-source income is income reported on this or another composite return.
- You waive New Jersey personal exemptions, credits, and deductions and agree to tax calculated at the highest rate in effect for single taxpayers for the year.
- You complete and deliver the election to the filing entity before it files the composite return.
When it's due
For tax year 2024, you cannot make or revoke the election after April 15, 2025.
What you'll need
Have these details ready to complete NJ-1080E:
- Filing entity: EIN, name, mailing address, entity type, contact person, and phone number.
- Individual participant: Social Security number, name, and principal address.
- Consent: Your signature and the date.
The filing entity must keep the completed, signed election form and make it available to the Division of Taxation upon request.
How to file
- Complete Part 1 with the filing entity’s information.
- Complete Part 2 with your individual information.
- Review the consent statement and eligibility conditions, then sign and date the election.
- Deliver Form NJ-1080E, or a substantially similar form, to the filing entity before it files the composite return and within the election deadline.
The filing entity retains your signed election. The supplied text does not give a mailing address or an e-file method for NJ-1080E.
For the separate composite return, Form NJ-1080-C, a return filed on behalf of 25 or more participants must be filed on compact disc or in an electronic format.
Common mistakes
- Assuming last year’s election carries over. The election must be made annually.
- Trying to elect or revoke too late. For tax year 2024, neither action is allowed after April 15, 2025.
- Expecting personal tax breaks on the composite income. Participants waive New Jersey personal exemptions, deductions, and credits, and the highest single-taxpayer rate applies.
- Assuming the entity takes over all responsibility. Each participant remains personally liable for timely filing and payment of their tax liability, including assessments resulting from an audit.
- Expecting individual estimated payments to count on the composite return. The text states that the composite return will not receive credit for estimated tax payments made by or on behalf of individual participants.
Questions people ask
Can I participate in more than one composite return?
Yes. You may participate in more than one New Jersey composite return if you satisfy all the qualification and election requirements.
What if I am not eligible or do not want to participate?
The text requires nonresident individuals who are ineligible or choose not to participate to file Form NJ-1040NR, reflecting income from all sources as well as New Jersey sources.
What if I discover other New Jersey-source income after the final composite return is filed?
You must file Form NJ-1040NR including all New Jersey-source income, including income already reported on the composite return. Include a schedule showing each filing entity’s name, the income included on your behalf, and the tax paid. You are entitled to a credit for the tax paid on your behalf on the composite return.
Can New Jersey still require a separate return after I participate?
Yes. The Director may require a participant to file Form NJ-1040NR when a separate return is needed to obtain complete facts and information or enforce the Gross Income Tax Act.