NJ-NR-A: Business Allocation Schedule (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form NJ-NR-A is New Jersey’s Business Allocation Schedule for Gross Income Tax. It reports New Jersey and total business receipts to calculate the allocation factor used to determine operational income from New Jersey sources. The schedule is filed with Form NJ-1040NR, NJ-1041, o
Who files this form
Use Form NJ-NR-A if your business activities take place both inside and outside New Jersey, or entirely outside New Jersey.
For a business operating both inside and outside New Jersey, this schedule calculates the allocation factor applied to operational income to determine the amount from New Jersey sources. Enclose it with your New Jersey Income Tax return, Form NJ-1040NR, NJ-1041, or NJ-1065.
What you'll need
Have the following information available to complete the schedule:
- Your Form NJ-1040NR, NJ-1041, or NJ-1065, so you can match the name, address, and Social Security number or federal EIN.
- Your business trade name, if different from your legal name, and the tax year ending date.
- Records of New Jersey receipts from sales, services, rentals, royalties, and other business transactions.
- Total receipts from business transactions everywhere during the period covered by the return.
- If applicable, receipts from lower tier unitary partnerships and information about gains from capital asset sales.
How to file
- Enter your identifying information exactly as shown on Form NJ-1040NR, NJ-1041, or NJ-1065.
- Enter New Jersey receipts on lines 1 through 5, omitting cents. Use only operational activities when calculating the allocation factor.
- Add lines 1 through 5 and enter total New Jersey receipts on line 6.
- Enter total receipts from business transactions everywhere on line 7.
- Divide line 6 by line 7 and enter the allocation factor on line 8. Carry the decimal to six places.
- Enter the factor where applicable: Part III of Form NJ-1040NR, Schedule D of Form NJ-1041, or line 19b and the Partnership Filing Fee section of Form NJ-1065.
- Enclose NJ-NR-A with your New Jersey Income Tax return.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out the schedule. The form must be enclosed with Form NJ-1040NR, NJ-1041, or NJ-1065.
- Using a different name or address. These must agree exactly with the return that accompanies the schedule.
- Using cost of performance to source services. Use market-based sourcing, based on where the benefit of the service is received, rather than cost of performance.
- Using a three-factor formula. The allocation factor uses a single sales factor formula.
- Including excluded activities. Do not include nonoperational activity or income from nonunitary partnerships. Lower tier nonunitary partnership receipts are excluded, while lower tier unitary partnership receipts are included.
- Using gross selling prices for certain capital assets. For capital assets not held for sale to customers in the regular course of business, use the net gain recognized. If the business buys and sells real estate or securities for trading purposes, use gross receipts from those sales.
Questions people ask
Do I use NJ-NR-A if all my business activities are outside New Jersey?
Yes. The form says to use this schedule when business activities are carried on entirely outside New Jersey, as well as when they occur both inside and outside the state.
When are service receipts allocated to New Jersey?
Service receipts are allocated to New Jersey if the benefit of the service is received in New Jersey. The form uses market-based sourcing, not cost of performance.
How do I calculate the allocation factor?
Divide total New Jersey receipts on line 6 by total receipts everywhere on line 7. Enter the result on line 8, carried to six decimal places.
Do receipts from lower tier partnerships belong on this schedule?
Receipts from lower tier unitary partnerships flow through and are included. Receipts from lower tier nonunitary partnerships do not flow through and are not included.
Are goods picked up in New Jersey always allocated to New Jersey?
No. Receipts are not allocated to New Jersey when goods are shipped from outside the state to a New Jersey location, then picked up by a common carrier and transported to a customer outside New Jersey.