Schedule PT: Dividend Exclusion for Certain Previously Taxed Dividends (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Schedule PT reports previously taxed dividends that are included again in entire net income for the current year. It calculates an additional dividend exclusion to prevent the same dividends from being taxed twice and reports subsidiary details, dividend amounts, and p
Who files this form
Use Schedule PT to claim an additional exclusion for dividends included in your entire net income in a prior tax year and included again in the current tax year. Generally, you must have filed a prior Corporation Business Tax return, included those dividends in entire net income, and paid more than the New Jersey minimum tax.
The exclusion applies only to dividends actually included in entire net income, not amounts previously excluded. Dividends that reduced your Net Operating Losses or Net Operating Loss Carryovers also qualify, but you must attach a rider detailing the amounts.
Taxpayers who previously filed Form BFC-1 and paid New Jersey tax on dividends now included on their current CBT-100 can also use Schedule PT.
What you'll need
Gather supporting records showing that the dividends were previously included in entire net income and that you paid more than the New Jersey minimum tax. The form lists examples such as:
- Previously filed Forms CBT-100, CBT-100S, or CBT-100U.
- Form CBT-DIV 2017 and CBT-DIV 2017 Supplemental.
- Federal IRC section 965 repatriation statements.
- Statements showing the prior dividend inclusions.
If the dividends reduced your Net Operating Losses or Net Operating Loss Carryovers, attach a rider detailing the amounts.
You will also need each subsidiary’s name, federal ID number, and ownership information, along with the deemed dividend amount, New Jersey tax paid, year the tax was paid, paid dividend amount, and year of distribution. Enter your name as shown on the return, federal ID number, and unitary ID number if applicable.
Common mistakes
- Do not include federal previously taxed income that was not taxed by New Jersey, or dividends and deemed dividends never taxed by New Jersey.
- Do not claim the additional exclusion for dividends that were previously excluded from entire net income.
- Do not treat investments in U.S. property under IRC section 959 as dividends or deemed dividends.
- Follow the column (3)(b) reminder: if New Jersey tax paid was $2,000 or less, enter zero in column (3)(d) for that row. For qualifying dividends that reduced Net Operating Losses or carryovers, attach the required rider and write “NOL rider” in column (3)(b).
- Complete Schedule PT before completing Schedule R.
- Do not amend a previously filed return to include GILTI as a dividend.
Questions people ask
Why is Schedule PT used?
It provides an additional exclusion to prevent the same dividends from being taxed twice when they were included in entire net income and taxed in a prior year, then included again in the current year. Supporting documentation is required.
Which section should I use for a subsidiary’s dividends?
Use Section A for an 80% or more owned subsidiary, Section B for a subsidiary in which you owned at least 50% but less than 80% of the voting stock, and Section C for a subsidiary in which you own less than 50% of the voting stock.
Can previously taxed GILTI be claimed?
Yes. Beginning with tax year 2023, GILTI is treated as a dividend, and previously taxed GILTI can be claimed on Schedule PT. You cannot amend a previously filed return to include GILTI as a dividend.
Where do the totals go on my return?
Carry Section D, line 3 to Schedule R, line 2 of Form CBT-100, CBT-100S, or CBT-100U. Carry Section D, line 5 to Schedule A, Part II, line 10 of CBT-100; Schedule A, Section I, Part II, line 11 of CBT-100U; or Schedule A, Part I, line 28 of CBT-100S.