Schedule X: Member's Taxable Income From Sources Other Than the Unitary Business of the Combined Group (Revision)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Schedule X calculates a combined group member’s taxable income from business activities separate from the group’s unitary business. It reports New Jersey income additions and deductions, the allocation factor, and the dividend exclusion for those separate activities.
Who files this form
Schedule X is for members of a combined group filing a water’s-edge or world-wide combined return.
A member includes Schedule X instead of filing a separate return when:
- Only part of its operations belongs to the combined group’s unitary business.
- It separately conducts business in New Jersey outside that unitary business.
- Those separate operations are not part of another combined group.
Use Schedule X to report the income from those separate operations. Do not include the combined group’s unitary business income, attributes, or allocation factors.
What you'll need
Have the member’s name, FEIN, unitary ID number, separate-activity income, and New Jersey and everywhere receipts available.
The following forms and supporting materials may also be needed:
- Form CBT-100U, Schedule A, Section I, Part II, line 1b: This supplies the income reported on Schedule X, Part I, line 1.
- CBT-100 schedules: Use these as worksheets for Part I, lines 5, 6, 10, and 11. Keep them with the member’s books and records.
- Federal Form 8992: Include a copy when reporting GILTI from independent business operations.
- Federal Form 8833: For treaty-excluded income, include the copy filed with the federal return, or a pro forma Form 8833 if none was filed for the member.
- Schedule PT: Complete this and Schedule X, Part III, if line 1 includes dividends or GILTI previously taxed by New Jersey.
- Federal Form 1118: Include a copy for the I.R.C. § 78 gross-up deduction.
- Separate riders: Provide explanations for other additions and deductions, calculations for the cannabis licensee deduction, and support for an independent-operations IBF exclusion when the member also claimed an IBF exclusion on CBT-100U.
How to file
Include Schedule X with Form CBT-100U for the member’s qualifying separate business operations, instead of filing a separate return for those operations.
- Complete Part I using only the income and adjustments from the member’s separate activities.
- Calculate the allocation factor in Part II and enter it on Part I, line 18.
- Calculate the dividend exclusion in Part III and enter it on Part I, line 9.
- Multiply Part I, line 17 by line 18. Enter the result on line 19 and on Form CBT-100U, Schedule A, Section I, Part II, line 22.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Including the group’s unitary business items: Schedule X uses only the member’s separate operations.
- Putting separately accounted income on Schedule X: Nonoperational income and nonunitary partnership income calculated under separate accounting are handled directly on Form CBT-100U, Schedule A.
- Entering the allocation factor as a percentage: Carry the fraction to six decimal places. Do not express it as a percent.
- Claiming previously taxed income that New Jersey never taxed: Only dividends or GILTI taxed in a prior year by New Jersey qualify for that deduction.
- Including I.R.C. § 78 gross-up amounts in the dividend exclusion: The text expressly prohibits this.
- Claiming I.R.C. § 250 deductions for GILTI or FDII: These deductions are no longer allowed.
- Putting cannabis licensee research expenses on line 15: Report these expenses on line 14 instead.
Questions people ask
What allocation factor do I use if all receipts are from New Jersey?
Enter 1.000000 if the member has no receipts outside New Jersey for the separate operations covered by Schedule X.
How are service receipts sourced?
Services use market sourcing. Part II, line 2 includes service receipts when the benefit of the service is received in New Jersey.
Does GILTI from independent business operations belong on Schedule X?
Yes. GILTI from those operations must be reported on Schedule X and is treated as a dividend. Include a copy of federal Form 8992.
Can operations be unitary to the member but separate from the combined group?
Yes. The text notes that activities and income may be unitary to the member without being unitary to the combined group filing the New Jersey combined return.