NJ-K-1: Shareholder's Share of Income/Loss (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Schedule NJ-K-1 reports a shareholder’s share of S corporation income or loss allocated and not allocated to New Jersey for 2025. It also reports gains or losses from asset dispositions, distributions, payments made on the shareholder’s behalf, and the shareholder’s share of Pass
Who files this form
Schedule NJ-K-1 reports a shareholder’s share of S corporation income and loss. Shareholders must include this schedule with their New Jersey Income Tax return and follow the reporting instructions in their return packet and publication GIT-9S, Income From S Corporations.
What you'll need
The form and its printed instructions call for information from:
- Federal Form 1120-S: the shareholder’s percentage of stock ownership.
- Schedule K or Schedule K Liquidated: the shareholder’s income and loss, payments, distributions, share of Pass-Through Business Alternative Income Tax, accumulated adjustments, and earnings and profits.
- Interest information: amounts reportable on federal Form 1099-INT, plus other interest paid to the shareholder and deducted by the corporation as described in the instructions.
You also need the shareholder’s identifying number, the corporation’s federal employer identification number, both names and addresses, shareholder status information, and amounts owed between the shareholder and corporation.
How to file
Include Schedule NJ-K-1 with the shareholder’s New Jersey Income Tax return. Follow the reporting instructions in the New Jersey Income Tax return packet and publication GIT-9S, Income From S Corporations, available on the Division of Taxation’s website.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Leaving NJ-K-1 out of the shareholder’s return: the form says this schedule must be included with the New Jersey Income Tax return.
- Skipping the annual written composite-return election: every shareholder participating in an NJ-1080-C composite return must elect in writing each year using Form NJ-1080E or a substantially similar form.
Questions people ask
What residency status goes in Part I?
Indicate the shareholder’s residency status at year’s end on line 2.
Where are distributions reported?
Enter distributions received during the year on Part II, line 9, using the amounts reported in Part V, VI, or VII of Schedule K or Schedule K Liquidated.
What debt amounts belong in Part V?
Line 2a reports the corporation’s total debt to the shareholder. Line 2b reports the shareholder’s total debt to the corporation. Use the amounts at year’s end or before the final distribution.
Can a nonresident shareholder participate in a composite return?
A New Jersey S corporation doing business in New Jersey may file an NJ-1080-C composite return for qualified nonresident shareholders who elect to participate. Each participating shareholder must make a written election every year using Form NJ-1080E or a substantially similar form.