NJ-1080E: Election to Participate in a Composite Return (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form NJ-1080E records an individual's annual election to participate in a New Jersey Nonresident Composite Return for 2025. It identifies the individual and filing entity and includes the individual's consent to include New Jersey-source income from that entity on Form NJ-1080-C.
Who files this form
Use Form NJ-1080E if you elect to have your New Jersey-source income from a filing entity included in its nonresident composite return, Form NJ-1080-C. This election is voluntary and must be made each year.
To qualify for 2025, 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 have the income taxed at the highest rate in effect for single taxpayers for the year.
Eligible filing entities include partnerships, LLCs, LLPs, New Jersey electing S corporations, estates, trusts, and professional athletic teams with New Jersey business, activities, or income.
Nonresident individuals who do not qualify or choose not to participate must file Form NJ-1040NR showing income from all sources, as well as New Jersey sources.
When it's due
For tax year 2025, you cannot make or revoke this election after April 15, 2026.
What you'll need
Have the following information ready to complete Form NJ-1080E:
- Filing entity: EIN, name, mailing address, contact person's name and phone number, and entity type.
- Individual participant: Social Security number, name, and principal address.
The election also requires your signature and the date. Read the consent statement and confirm that you meet every eligibility condition before signing.
How to file
- Complete Part 1 with the filing entity's information and entity type.
- Complete Part 2 with your individual information.
- Read the consent statement, then sign and date the election.
- Deliver the completed election to the filing entity before it files the composite return.
The filing entity must retain the completed, signed election and make it available to the New Jersey Division of Taxation upon request.
The text does not provide a mailing address or an electronic filing method for Form NJ-1080E.
Common mistakes
- Assuming the election carries over: You must make a new election each year.
- Overlooking the tax treatment: Participants give up New Jersey personal exemptions, deductions, and credits. Tax is calculated at the highest rate in effect for single taxpayers for the year.
- Assuming participation removes personal responsibility: Each participant remains personally liable for timely filing and payment of their tax liability, including assessments resulting from an audit of the composite return.
- Expecting individual estimated payments to transfer: The composite return will not receive credit for estimated tax payments made by, or on behalf of, individual participants.
- Failing to keep the signed election: The filing entity must retain it and provide it to the Division of Taxation upon request.
Questions people ask
Can I participate in more than one New Jersey composite return?
Yes, as long as you satisfy all eligibility and election requirements.
Does signing this form consent to more than reporting my income?
Yes. You consent to the composite-return provisions and responsibilities. The election also constitutes consent to personal jurisdiction in New Jersey for New Jersey personal income tax purposes and binds your heirs, representatives, assigns, successors, executors, and administrators.
What if I discover other New Jersey-source income after the final composite return is filed?
The printed rule requires you to file Form NJ-1040NR including all New Jersey-source income, including your share reported on the composite return. Include a schedule listing each filing entity, the income reported on your behalf, and the tax paid. You are entitled to a credit for the tax paid on your behalf through the composite return.
Can New Jersey still require me to file an individual return?
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.