Part-Year Residents and Nonresidents

Understanding Income Tax

View of a home on Spring Lake.

Determining Residency......................................................................................................................................... 2

Domicile ......................................................................................................................................................................................................... 2

Permanent Home ....................................................................................................................................................................................... 3

Income Filing Threshold ....................................................................................................................................... 3

Part-Year Resident or Part-Year Nonresident .................................................................................................... 4

Filing Requirements .................................................................................................................................................................................. 4

Both Part-Year Resident and Nonresident ......................................................................................................... 5

Examples........................................................................................................................................................................................................ 5

How Residents and Nonresidents Are Taxed ..................................................................................................... 6

Residents ....................................................................................................................................................................................................... 6

Nonresidents................................................................................................................................................................................................ 6

Pennsylvania residents................................................................................................................................................................... 6
Completing a Part-Year Resident Return............................................................................................................ 7

Completing a Part-Year Nonresident Return ................................................................................................... 22

Sample Returns ........................................................................................................................................................................................ 30

Connect With Us. ................................................................................................................................................. 40

GIT-6
January 2025

1
 Part-Year Residents and Nonresidents
Understanding Income Tax

This bulletin explains:

1. Determining your residency;

2. Your tax responsibilities;
3. How to complete a part-year New Jersey Income Tax return; and
4. When a part-year resident must file both resident and nonresident Income Tax returns.

Determining Residency
For Gross Income Tax residency determination issues regarding a military service member and their spouse, New
Jersey follows the federal Servicemembers Civil Relief Act, 50 U.S.C. § 3901, et seq, which includes the Military
Spouses Residency Relief Act and Veterans Auto and Education Improvement Act of 2022. If you are not a current
military service member and/or the spouse of an active service member, your residency is determined by where
you were domiciled during the tax year. If you moved in to or out of New Jersey for part of the year, you are a
part-year resident and may need to file a resident tax return to report the income received for the period you
resided here. If you are not domiciled in New Jersey, but received income from sources within New Jersey, you
may need to file a nonresident tax return. Income from sources within New Jersey for a nonresident individual
means the income from the categories of gross income enumerated and classified under chapter 5 of the New
Jersey Gross Income Tax Act to the extent that the income is earned, received or acquired from sources within
New Jersey.

Domicile is the place and state you consider your permanent home — the place where you intend to return after
a period of absence (e.g., vacation, business assignment, educational leave).

You have only one domicile, although you may have more than one place to live. Your domicile continues until
you establish a new permanent home elsewhere.

The Division considers many factors when determining if New Jersey is your domicile, including:

• Your intent;
• Where you register to vote;
• Your driver’s license and vehicle registration;
• Where you have family ties;
• Whether your federal tax return lists New Jersey as a home address;
• Location of bank accounts;
• Whether you participated in a New Jersey property tax relief program. GIT-6
January 2025
2
 Part-Year Residents and Nonresidents
Understanding Income Tax

Permanent Home means a residence that you maintain permanently as your principal residence (main home),
whether or not you own it.

Your home is not considered permanent if you maintain it only during a temporary period of time to accomplish
a specific purpose (e.g., temporary job assignment). There are, however, specific guidelines for military personnel
(see Military Personnel and Families).

If New Jersey is your domicile, you are considered a resident for New Jersey tax purposes, unless:

1. You did not maintain a permanent home in New Jersey;

2. You maintained a permanent home outside New Jersey; and

3. You did not spend more than 30 days in New Jersey.

If New Jersey is not your domicile, you are only considered a resident if you maintain a permanent home and
spend more than 183 days here.

Income Filing Threshold

Your residency status and income determine whether you are required to file a New Jersey Income Tax return.
You are responsible for New Jersey Income Tax, and must file, if your gross income exceeds the following:

Filing Thresholds

In-State and Out-of-State

Filing Status Gross Income for the Entire
Year

Single
$10,000
Married/CU Partner Filing Separate Return

Married/CU Couple Filing Joint Return

Head of Household
$20,000
Qualifying Widow(er)/Surviving CU Partner

You do not have to file a New Jersey return under the following circumstances: You received no income during
the part of the year you were a resident, and you had no New Jersey source income during the part of the year
you were a nonresident.
GIT-6
January 2025
3
 Part-Year Residents and Nonresidents
Understanding Income Tax

Part-Year Resident or Part-Year Nonresident

If you change your domicile and meet the definition of a resident or nonresident for only part of the year, you
are a resident for part of the year (part-year resident) and a nonresident for the remainder of that year (part-year
nonresident).
Filing Requirements
Your filing status and gross income determine whether you have to file a New Jersey Income Tax return. Anyone
who meets the income requirements must file.

See Who Must File to find out whether you are required to file.

Part-year residents must use Form NJ-1040 and indicate the period of their New Jersey residency. The return
should show only the income received during that period. Likewise, part-year nonresidents must use Form NJ-
1040NR and indicate the period of time they were residents.

If you received income from New Jersey sources during both your residency and nonresidency periods, you must
file both a NJ-1040 and a NJ-1040NR. You must report the income you received during the time you were a
resident on your resident return. Report the income received while you were a nonresident on your nonresident
return.

Examples
1. A taxpayer was a New Jersey resident from January 1 through December 31. They file a full-year resident
return showing the income they received that year.

2. Two married taxpayers were New Jersey residents from May 1 to December 31. They had no New Jersey
income prior to becoming residents. They must file a part-year resident return and report the income
they received during their period of residency (May to December).

3. A taxpayer was a full-year resident of New York who worked in New Jersey from July through November.
They file a full-year nonresident return because they were a nonresident for the entire year. Their New
Jersey nonresident return will show the income they received during the period they were a nonresident
(i.e., January to December).

4. A taxpayer worked in New Jersey for the entire year. From January 1 to March 31, they were a New Jersey
resident. From April 1 to December 31, he was a Delaware resident. They must file two New Jersey Income
Tax returns:

GIT-6
January 2025
4
 Part-Year Residents and Nonresidents
Understanding Income Tax

• A part-year resident return showing the income they received during the three months they were
a New Jersey resident; and
• A part-year nonresident return showing their income during the period they were a nonresident
of New Jersey.

Both Part-Year Resident and Nonresident

If you were a resident for part of the year, you were a nonresident for the remainder of that year. File part-year
resident and/or nonresident returns as follows:

• You must file both a part-year resident return and a part-year nonresident return if:

 Your gross income from all sources (both in-state and out-of-state) for the entire year was more than
the filing threshold amount (see chart on page 3);
 You received income (whether from New Jersey sources or not) during the part of the year you were
a resident; and
 You received any amount of income from New Jersey sources during the part of the year you were a
nonresident.

• File a part-year resident return if:

 You received income during the part of the year you were a resident; and

 Your income for the entire year is over the filing threshold (see chart).

• File a part-year nonresident return if:

 You received income from New Jersey during the part of the year you were a nonresident; and

 Your income for the entire year is over the filing threshold (see chart).

Examples
1. A single taxpayer was a resident of California for 10 months and a resident of New Jersey for two months.
Their income as a California resident totaled $23,000, and the income they received during the two
months they were a resident of New Jersey was $2,900. The taxpayer is subject to tax on the $2,900 they
received as a New Jersey resident because their income from everywhere for the entire year was more
than the $10,000 filing threshold amount.

GIT-6
January 2025
5
 Part-Year Residents and Nonresidents
Understanding Income Tax

2. A single taxpayer was a New Jersey resident from January through September, when they moved to
Florida and became a resident there. Their income as a resident totaled $5,800, and their income while a
Florida resident was $600. The taxpayer is not required to file a return, and they owe no New Jersey
Income Tax on the $5,800 because their income from everywhere for the entire year was less than the
$10,000 filing threshold amount. However, the taxpayer must file a part-year resident return to claim any
refund of New Jersey Income Tax that was either withheld or remitted through estimated payments.

When they file their New Jersey return, they must also enclose a copy of their federal income tax return.
If they did not file a federal return, they must enclose an informal statement – written, signed, and dated
by them – to certify that their income for the year was less than $10,000.

How Residents and Nonresidents Are Taxed

Residents
Residents are subject to tax on their income from all sources, whether the income is from inside or outside New
Jersey. As a part-year resident, your resident return must include all income you received during the time you
were a resident. Married/civil union couples filing jointly must report the income of both spouses.

Part-year residents must prorate all of their exemptions, deductions, and credits, in addition to pension and other
retirement income exclusions, to reflect the time period covered by their return. (In this publication, prorate
means to allocate proportionally over a set time period.) See Completing a Part-Year Resident Return .

For more information on completing the resident return, see instructions for Form NJ-1040.

Nonresidents
For nonresidents, New Jersey Income Tax liability is based on the percentage of their total income that comes
from New Jersey. The income section of the nonresident return has two columns:

1. Column A, income from everywhere, in which you report total income from all sources (both inside and
outside New Jersey combined); and

2. Column B, income from only New Jersey sources.

Pennsylvania residents, see page 24.

As a nonresident, you must calculate your tax on income from all sources as if you were a resident, and then
prorate your tax based on your New Jersey source income.

GIT-6
January 2025
6
 Part-Year Residents and Nonresidents
Understanding Income Tax

For more information on completing the nonresident return, see instructions for Form NJ-1040NR.

Nonresident service members

You are not required to include your military pay on the New Jersey nonresident return. This is in accordance
with federal legislation (Service members Civil Relief Act, P.L. No. 108-189). Do not report military pay in Column
A or Column B of Form NJ-1040NR.

Income you receive as a nonresident from New Jersey sources other than military pay is taxable.

In addition, under the federal Military Spouses Residency Relief Act (P.L. 111-97), a military service member’s
nonmilitary spouse who meets certain requirements is allowed to keep a tax domicile while moving from state
to state. Under the Act, a qualified civilian spouse is considered a nonresident and is not subject to New Jersey
Income Tax on wages earned in New Jersey. Nonresident civilian spouses are subject to tax on all other types of
income from New Jersey sources, such as a gain from the sale of property.

Military, see Military Personnel and Families.

Completing a Part-Year Resident Return

• Enter your New Jersey residency period above line 1;
• Report income, withholdings, and payments for the period of New Jersey residency only;
• Prorate exemptions, deductions, exclusions, and credits based on residency period;
• If you also complete a part-year nonresident return, allocate your income, withholdings, and payments
between the two returns as appropriate.

1. NJ Residency Status. Show the beginning and ending dates of your residency period. If you were a resident
for 15 days or more of a month, that month counts as a month of residence. So, if you were a resident from
January 27 to July 21, you were a resident for six months.

GIT-6
January 2025
7
 Part-Year Residents and Nonresidents
Understanding Income Tax

2. Income. Complete lines 15–26. Enter the total amount you received in each category of income while you
were a New Jersey resident.

3. Pension and Other Retirement Income Exclusion.

a. Retirement/Pension Exclusion (line 28a). This is only available if your entire income for the year was
$150,000 or less. If your income for the entire year is between $0 and $100,000, prorate the maximum
exclusion amount from this chart based on the number of months you were a New Jersey resident. See
the example on the next page. If your income for the entire year is over $100,000, do not prorate the
exclusion amount. See instructions for Form NJ-1040.

GIT-6
January 2025
8
 Part-Year Residents and Nonresidents
Understanding Income Tax

If you and your spouse file a joint return, and only one of you is 62 or older or disabled, you can claim
the full amount of the prorated exclusion. However, only the income of the one who is 62 or older or
disabled can be excluded.

b. Other Retirement Income Exclusion (line 28b). If you (and/or your spouse if filing jointly) were 62 or older
on the last day of the tax year, you may qualify to exclude other income on line 28b.

There are two parts to the total exclusion:

1. Part I, the unclaimed portion of your prorated pension exclusion; and

2. Part II, a special exclusion for taxpayers who cannot receive Social Security or Railroad Retirement
benefits.

Prorating the Pension Exclusion:

Months of NJ Residence
Total Pension Exclusion Amount x = Prorated Pension Exclusion Amount
12

Example
A 65-year-old, single taxpayer who was a New Jersey 4
$ $45,000 x = $15,000
resident for four months of the 2024 Tax Year prorates 12
the pension exclusion amount like this:

Do not complete Worksheet D in the NJ-1040 instructions to calculate the total exclusion amount you are eligible
to claim. Instead, use Worksheet E.

More Information. For more detailed information on pensions, annuities, and IRAs, see Retirement Income
and Roth IRAs. For information on calculating your partnership and S corporation income, see Income From
Partnerships and Income from S Corporations.

4. Exemptions. You must prorate the total exemption allowance amount (line 13) based on the number of
months you were a resident. For this calculation, 15 days or more equals a full month. Use the formula below,
and then enter the prorated exemption amount on line 30.

Prorating the Exemption Allowance:

Months of NJ Residence
Line 13 × = Prorated Exemption Amount
12

GIT-6
January 2025
9
 Part-Year Residents and Nonresidents
Understanding Income Tax

5. Deductions.
a. Medical Expenses (line 31). You can deduct certain medical expenses for which you were not reimbursed
by insurance or any other plan, qualified Archer medical savings account (MSA) contributions, and self-
employed health insurance costs. Complete Worksheet F, located in the NJ-1040 instructions, to
calculate your deduction for medical expenses while you were a resident.

b. Alimony and Separate Maintenance Payments (line 32). You can deduct alimony and separate
maintenance payments paid while you were a resident. You cannot deduct child support payments. Refer
to the Tax Guide on divorce for more information.

c. Qualified Conservation Contribution (line 33). You can deduct the amount of any qualified conservation
contribution you made while you were a resident.

d. Health Enterprise Zone (line 34). If you provide primary care services in a qualified medical or dental
practice you own, that is located in or within five miles of a designated Health Enterprise Zone (HEZ), you
may be able to deduct a percentage of the net income from that practice. See Health Enterprise Zones
for information on how to calculate the HEZ deduction.

e. Alternative Business Calculation Adjustment (line 35). If you report net business loss(es) on Schedule NJ-
BUS-1, Business Income Summary Schedule, you may be eligible for an income adjustment based on the
loss(es) incurred during your residency period. Complete Schedule NJ-BUS-2, Form NJ-1040 to calculate
the adjustment amount.

GIT-6
January 2025
10
 Part-Year Residents and Nonresidents
Understanding Income Tax

f. Organ/Bone Marrow Donation Deduction (line 36). If you donated an organ or bone marrow to another
person for transplantation, you may be eligible to deduct up to $10,000 of unreimbursed expenses for
travel, lodging, and lost wages as a result of your donation. The deductions must be claimed in the year
in which the expenses occurred, and you may be asked to provide supporting documentation.

g. New Jersey College Affordability Deductions (line 37a-c). If your gross income was $200,000 or less, you
may be eligible to deduct certain educational expenses. You can deduct up to $10,000 of contributions
made during the year into an NJBEST (New Jersey Better Educational Savings Trust) account on line 37a;
deduct up to $2,500 of principal and interest paid during the year on an NJCLASS (New Jersey College
Loans to Assist State Students) loan on line 37b; or if you, your spouse, or your dependent enroll in or
attend a New Jersey institution of higher education, you can deduct up to $10,000 for tuition costs paid
during the year on line 37c.

New Jersey does not allow deductions for adjustments taken on the federal return, such as employee business
expenses or IRA and Keogh Plan contributions.

GIT-6
January 2025
11
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
12
 Part-Year Residents and Nonresidents
Understanding Income Tax

6. Total Property Taxes (18% of Rent) Paid (line 40a). Enter the property taxes, or 18% of your rent, due and
paid on your qualified principal residence (main home) while you were a resident.
Property Tax Deduction/Credit (line 41/line 56). Part-year residents may be eligible to claim a deduction
(up to 100% of property taxes due and paid or up to $15,000, whichever is less) or a refundable credit (up to
$50) for property taxes, or 18% of rent, due and paid during their residency period.

If you do not claim credit for taxes paid to another jurisdiction, complete Worksheet H to determine the
property tax deduction and whether you should take the property tax deduction on line 41, Form NJ-1040 or
the property tax credit on line 56.

If you claim credit for taxes paid to another jurisdiction, first complete lines 1 and 2 of Worksheet H, and then
complete Schedule NJ-COJ and Worksheet I to make this determination. Enter on line 1 of Worksheet H the
amount of property taxes, or 18% of rent due and paid, while you were a resident from line 40a, Form NJ-
1040.

Complete the remainder of the worksheet according to the instructions. The maximum credit for a full-year
resident is $50 (or $25 if you and your spouse file separate returns but lived together). You must prorate this
amount based on the number of months you were a resident. For example, if you were a resident for nine
months, you are eligible for a maximum credit of $37.50. After prorating, answer the question at line 8 of
Worksheet H based on this prorated amount. This will determine whether you will receive a greater benefit
by taking the property tax deduction or claiming the prorated credit.

More Information. For information on claiming credit for taxes paid to another jurisdiction, see Credit for Taxes
Paid to Other Jurisdictions (Wage Income), and Credit for Taxes Paid to Other Jurisdictions
(Business/Nonwage Income). For more detailed information on the Property Tax Deduction/Credit, see the
instructions for Form NJ-1040.

GIT-6
January 2025
13
 Part-Year Residents and Nonresidents
Understanding Income Tax

8. Sheltered Workshop Tax Credit (line 46). Enter the amount of your Sheltered Workshop Tax Credit from
Part IV, line 12 of Form GIT-317. Allocate the total amount of the credit between your part-year resident and
part-year nonresident returns, if appropriate.

9. Gold Star Family Counseling Credit (line 47). This credit is for mental health care professionals who
provided counseling through the Gold Star Family Counseling program. The amount of the credit is equal to
the number of hours of counseling provided through the program (a minimum of 20 hours and a maximum
of 40 hours per year) multiplied by the TRICARE rate for the service. The credit is nonrefundable and cannot
reduce your Income Tax liability to an amount less than zero.

If you claim this credit, we will need to verify your eligibility. You will be asked to provide copies of the
following:

• A statement with the number of counseling hours donated to Gold Star families in New Jersey along
with the TRICARE rate for those counseling services; and
• A letter from the Gold Star Counseling Program verifying your participation; and
• A copy of your New Jersey State license from one of the following:
o The State Board of Medical Examiners, the State Board of Psychological Examiners, the State Board
of Social Work Examiners, the State Board of Marriage and Family Therapy Examiners, the Alcohol
and Drug Counselor Committee, the Professional Counselor Examiners Committee, or the
Certified Psychoanalysts Advisory Committee.

10. Credit for Employer of Organ/Bone Marrow Donor (line 48). If you are an employer who provided paid
time off to an employee who missed work to donate an organ or bone marrow for transplantation, you may
be able to claim a credit. The paid time off must have been in addition to any other paid time off for which
the employee was entitled. If you qualify, you can take a credit of 25% of the employee’s salary for up to 30
days of time missed from work for each donation.

You may be asked to provide documentation indicating that you are eligible to claim the credit, such as
employee pay statements and a letter from a physician.

GIT-6
January 2025
14
 Part-Year Residents and Nonresidents
Understanding Income Tax

11. Shared Responsibility Payment (line 53c). If you are a resident who is required to file a return, you must
have minimum essential health coverage for the year, unless you qualify for an exemption, or qualify for
a waiver by participating in the New Jersey Easy Enrollment Health Insurance Program. Part-year residents
must have coverage or qualify for an exemption for each month of their New Jersey residency or qualify for
a waiver. If you or anyone in your tax household did not have the required coverage and does not qualify for
an exemption, you owe a shared responsibility payment.

Your tax household includes you, your spouse (if filing jointly), and any individuals you claim as dependents
on your NJ-1040. It also includes individuals you can, but do not, claim as dependents on your return.

Refer to the NJ-1040 instructions for more information on how to complete Schedule NJ-HCC and calculate
your shared responsibility payment.

If your income on line 29 is under the filing threshold for your filing status, you do not owe a shared
responsibility payment. Do not complete line 53c.

GIT-6
January 2025
15
 Part-Year Residents and Nonresidents
Understanding Income Tax

12. Tax Withheld/Property Tax Credit/Estimated Payments.

a. Line 55. Enter the amount of New Jersey Income Tax withheld from wages you earned or other payments
you received while you were a resident. If your employer combined wages you earned as a resident and
wages you earned as a nonresident on the same W-2, allocate the New Jersey Income Tax withheld (box
17) between your part-year resident and part-year nonresident returns and enter only the tax withheld
while you were a resident. If you did not earn any of the wages on the W-2 while a nonresident, report
the total New Jersey tax withheld that is shown on the W-2.

b. Line 56. Enter the amount of your prorated credit (if any).

c. Line 57. Enter the amount of estimated payments to New Jersey for your period of residency. If you made
estimated payments both as a resident and as a nonresident, enter on your part-year resident return the
payment(s) made to meet the tax liability for your period of residency. Enter on the part-year nonresident
return the payment(s) made to satisfy your tax liability during your non-residency period. Also enter any
amounts paid to qualify for an extension of time to file.

13. New Jersey Earned Income Tax Credit (line 58). You must file Form NJ-1040 to receive a New Jersey Earned
Income Tax Credit. Most residents who are eligible and file for a federal earned income credit can also receive
a New Jersey credit equal to 40% of the federal benefit. Calculate the amount with this formula:

Federal earned income credit ________________ × .4 = ________________

Part-year residents must prorate the credit based on the number of months you were a resident.

If the IRS is calculating your federal credit, fill in the first oval below line 58, Form NJ-1040. The IRS is expected
to provide clarifying information to the Division of Taxation. Please allow at least 90 days for the Division to
process the information, after which the New Jersey Earned Income Tax Credit will be issued as part of your
Income Tax refund.

GIT-6
January 2025
16
 Part-Year Residents and Nonresidents
Understanding Income Tax

PRORATING THE NEW JERSEY EARNED INCOME TAX CREDIT:

Months of NJ Residence
Total New Jersey EITC Amount × = Prorated New Jersey EITC Amount
12

14. Wounded Warrior Caregivers Credit (line 62). This credit is for resident taxpayers who provided care for a
relative who is a qualified armed services member and has gross income of $100,000 or less (married, filing
joint; head of household; qualifying widow(er)) or $50,000 or less (single; married, filing separate).
A relative is a:
Spouse Parent Child Brother Sister
Grandparent Grandchild Aunt Uncle First Cousin
Nephew Niece Great-grandparent Great-grandchild

A qualifying armed services member is a person who:

• Was honorably discharged or released under honorable circumstances by the last day of the tax year;
and
• Has a disability emerging from active U.S. military service in war or conflict on or after September 11,
2001; and
• Has either a 100% disability rating or receives individual employability benefits. (Those benefits result
from one disability of at least 60% or two disabilities with a combined rating of at least 70%, and one
of the two disabilities is at least 40%); and
• Lived with you in New Jersey for at least six months of the tax year.

Complete Schedule NJ-WWC to calculate the credit. If two or more people care for the same person, the
credit is divided based on the share of total care expenses for the year. If you claim the credit, you will be
asked to provide copies of the following:

• Your Schedule NJ-WWC;

• A letter from the Department of Veterans Affairs stating that the qualified armed service member has
Individual Unemployability status; and
• Your most recent VA benefit letter.

Part-year residents must use their income for the entire year when determining eligibility.

GIT-6
January 2025
17
 Part-Year Residents and Nonresidents
Understanding Income Tax

15. Pass-Through Business Alternative Income Tax Credit (line 63). For more information on the Pass-
Through Business Alternative Income Tax Credit, visit our website.

16. Child and Dependent Care Credit (line 64). This credit is available to certain taxpayers who have taxable
income, shown on line 42, of $150,000 or less, and paid someone to care for a qualifying person so they can
work or look for work. To qualify, you must be allowed a federal credit for child and dependent care expenses.
If your filing status is married, filing separately, you are only eligible for the credit if you meet certain
exceptions for federal purposes.

PRORATING THE CREDIT ALLOWANCE:

Months of NJ Residence
Total Credit Amount × = Credit Amount
12

GIT-6
January 2025
18
 Part-Year Residents and Nonresidents
Understanding Income Tax

17. New Jersey Child Tax Credit (line 65). If your taxable income is $80,000 or less, you are eligible for a credit
for each dependent who is under the age of 6 on the last day of the tax year. If your filing status is married
filing separately, you are not eligible for this credit.

GIT-6
January 2025
19
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
20
 Part-Year Residents and Nonresidents
Understanding Income Tax

18. Property Tax Credit and Wounded Warrior Caregivers Credit Application Only. Certain eligible
senior/disabled homeowners and tenants can use the Property Tax Credit Application (Form NJ-1040-HW)
instead of Form NJ-1040 to apply for the Property Tax Credit and/or the Wounded Warrior Caregivers Credit
only.

If you are applying for the Property Tax Credit, use Form NJ-1040-HW only if you:

• Were 65 or older or blind or disabled on December 31, 2024; and

• Had gross income from everywhere (in-state and out-of-state) for the entire year of $20,000 or less (or
$10,000 or less if filing status is single or married/CU partner, filing separate return); and
• Have not filed and will not file a 2024 New Jersey resident Income Tax return; and
• Did not own your principal residence in New Jersey on October 1, 2024.
GIT-6
January 2025
21
 Part-Year Residents and Nonresidents
Understanding Income Tax

Do not file Form NJ-1040-HW if you owned and occupied your principal residence in New Jersey on October
1, 2024. Your property tax credit will be included with your ANCHOR benefit, provided you file a ANCHOR
application.

If you are applying for the Wounded Warrior Caregiver Credit, use Form NJ-1040HW only if you:

• Have not filed and will not file a 2024 New Jersey resident Income Tax return; and

• Had gross income from everywhere (in-state and out-of-state) for the entire year of $20,000 or less (or
$10,000 or less if filing status is single or married/CU partner, filing separate return). Part-year residents
must use income for the entire year.

Completing a Part-Year Nonresident Return

Important Points:
• Enter the dates you were a New Jersey resident above line 1;
• Report income, withholdings, and payments for the period of New Jersey nonresidency only;
• When reporting your income, fill out both Column A and Column B completely;
• Prorate exemptions, deductions, exclusions, and credits based on the nonresidency period;
• If you also complete a part-year resident return, allocate your income, withholdings, and payments
between the part-year resident and part-year nonresident returns as appropriate.

GIT-6
January 2025
22
 Part-Year Residents and Nonresidents
Understanding Income Tax

1. Residency Status.

a. Complete the “State of Residency (outside NJ)” box below your Social Security number(s) at the top of
the return. Indicate where you lived outside New Jersey while you were a nonresident. If you lived at more
than one location, give the most recent.

b. Show the beginning and ending dates of your New Jersey residency during the tax year.

When you file a part-year nonresident return, you are likely to be required to file a part-year resident return, too
(see page 5). The part-year resident return covers the period of New Jersey residency shown above line 1, and
the part-year nonresident return covers the portion of the year you were not a resident of New Jersey.

GIT-6
January 2025
23
 Part-Year Residents and Nonresidents
Understanding Income Tax

2. Income. Complete both Columns A and B, lines 15 to 27. Include only income you received while a
nonresident. Report in Column A income from all sources (both inside and outside New Jersey) as if you were
a resident; in Column B, show your income from New Jersey sources. Follow the nonresident return
instructions for completing each line. For every entry in Column A, there should be an entry on the
corresponding line in Column B. If none of the income in Column A is from New Jersey sources, enter “0” in
Column B. In some circumstances, the amount in Column B can be more than the amount in Column A.

You do not need to report income on line 22, Column B since pension, annuity, and IRA income is not taxable
for nonresidents.

No entry is needed on line 25, Column B, since alimony and separate maintenance payments received are
not taxable for nonresidents.

Pennsylvania residents are not subject to Income Tax on wages they earn in New Jersey. Therefore, if you
are a Pennsylvania resident, you must report all your wages in Column A, and enter “0” in Column B.

Pennsylvania residents are subject to New Jersey tax on other types of income from New Jersey sources.

3. Pension and Other Retirement Income Exclusion.

a. Pension Exclusion (line 28a). Column A: If you were a New Jersey nonresident for only part of the year
and had total income from all sources for the entire year of $150,000 or less, you may qualify for a pension
exclusion if you meet the other eligibility requirements. If your income for the entire year is $0 through
$100,000, prorate the maximum exclusion amount from this chart based on the number of months you
were a nonresident. Time spent as a nonresident for 15 days or more equals one full month. (See the
description of how to prorate the pension exclusion amount on page 9).

Column B: Do not make an entry in Column B since pension, annuity, and IRA income is not taxable for
nonresidents.

b. Other Retirement Income Exclusion (line 28b, Columns A and B). If you (and/or your spouse, if filing jointly)
were 62 or older on the last day of the year, you may qualify to exclude other income on line 28b. There
are two parts to the total exclusion. Part I is the unclaimed portion of your prorated pension exclusion,
and Part II is a special exclusion for taxpayers who cannot receive Social Security or Railroad Retirement
benefits. Do not complete Worksheet D in the NJ-1040NR instructions to calculate the total exclusion
amount you are eligible to claim. Instead, use Worksheet E in the NJ-1040NR instructions to calculate
your total exclusion as follows:

• Part I. Total the earned income (wages, net profits from business, partnership income, and S
corporation income) you received from all sources for the entire year.
GIT-6
January 2025
24
 Part-Year Residents and Nonresidents
Understanding Income Tax

If your earned income for the entire year was $3,000 or less, and you did not use the entire prorated
pension exclusion on line 28a, you may use the unclaimed pension exclusion on line 28b if your total
income from all sources for the entire year – before subtracting a pension exclusion – was $150,000
or less;

• Part II. If you cannot receive Social Security or Railroad Retirement benefits, but would have been
eligible for benefits had you fully participated in either program, you also may be eligible for an
additional exclusion, whether or not you used all of your prorated pension exclusion on line 28a.

When you and your spouse file a joint return, and only one of you is 62 or older, you can claim the
full amount of the prorated exclusion. However, only the income of the one who is 62 or older can be
excluded.

More Information. For information on calculating your partnership and S corporation income, see Partnership
Income and Income From S Corporations. For more information on pension, annuity, and IRA withdrawal
income and the New Jersey income exclusions, see Retirement Income.

4. Exemptions.

You must prorate the total exemption allowance amount (line 13) based on the number of months you were
a New Jersey nonresident. For this calculation, 15 days or more equals a full month. Use the formula below,
and then enter the prorated exemption amount on line 30.
GIT-6
January 2025
25
 Part-Year Residents and Nonresidents
Understanding Income Tax

PRORATING THE EXEMPTION ALLOWANCE:

Months of NJ Nonresidence
Line 13 × = Prorated Exemption Amount
12

5. Deductions.
a. Medical Expenses (line 31). You can deduct certain medical expenses for which you were not reimbursed
by insurance or any other plan, qualified Archer medical savings account (MSA) contributions, and health
insurance costs of the self-employed. Complete Worksheet F in the nonresident return instructions to
calculate your deduction for medical expenses. Include only those expenses that you incurred and paid
while you were a nonresident.

b. Alimony and Separate Maintenance Payments (line 32). You can deduct alimony and separate
maintenance payments paid while a nonresident. Child support payments are not deductible.

c. Qualified Conservation Contribution (line 33). You can deduct the amount of any qualified conservation
contribution you made while a nonresident.

d. Health Enterprise Zone (line 34). If you provide primary care services in a qualified medical or dental
practice you own, that is located in or within five miles of a designated Health Enterprise Zone (HEZ), you
may be able to deduct a percentage of the net income from that practice. For information on the HEZ
deduction, see Health Enterprise Zones.

e. Alternative Business Calculation Adjustment (line 35). If you report net business loss(es) on Schedule NJ-
BUS-1, you may be eligible for an income adjustment based on the losses you incurred while a
nonresident. Complete Schedule NJ-BUS-2 to calculate the amount of your adjustment.

f. Organ/Bone Marrow Donation Deduction (line 36). If you donated an organ or bone marrow to another
person for transplantation, you may be eligible to deduct up to $10,000 of unreimbursed expenses for
travel, lodging, and lost wages as a result of your donation. The deductions must be claimed in the year
in which the expenses occurred, and you may be asked to provide supporting documentation.

g. New Jersey College Affordability Deductions (line 37a-c). If your gross income was $200,000 or less, you
may be eligible to deduct certain educational expenses. You can deduct up to $10,000 of contributions
made during the year into and NJBEST account on line 37a; deduct up to $2,500 of principal and interest
paid during the year on an NJCLASS loan on line 37b; or if you, your spouse, or your dependent enroll in

GIT-6
January 2025
26
 Part-Year Residents and Nonresidents
Understanding Income Tax

or attend a New Jersey institution of higher education, you can deduct up to $10,000 for tuition costs
paid during the year on line 37c.

You cannot take deductions for adjustments listed on your federal return, such as employee business
expenses or IRA and Keogh Plan contributions.

6. Sheltered Workshop Tax Credit (line 43). Enter the amount of your Sheltered Workshop Tax Credit from
Part IV, line 12 of Form GIT-317. Allocate the total amount of the credit between your part-year resident and
part-year nonresident returns if appropriate.

7. Gold Star Family Counseling Credit (line 44). Enter the amount of credit you can take if you are a mental
health care professional who provided counseling through the Gold Star Family Counseling program. If you
were a part-year nonresident, include only the hours of counseling provided through the program while you
were a New Jersey nonresident.

8. Credit for Employer of Organ/Bone Marrow Donor (line 45). If you are an employer who provided paid
time off to an employee who missed work to donate an organ or bone marrow for transplantation, you may
be able to claim a credit. The paid time off must have been in addition to any other paid time off for which
the employee was entitled. If you qualify, you can take a credit of 25% of the employee’s salary for up to 30
days of time missed from work for each donation.

You may be asked to provide documentation indicating that you are eligible to claim the credit, such as
employee pay statements and a letter from a physician.

GIT-6
January 2025
27
 Part-Year Residents and Nonresidents
Understanding Income Tax

9. Tax Withheld/Estimated Payments.

a. Line 50. Enter the amount of New Jersey Income Tax withheld from wages you earned or other payments
you received while you were a nonresident. If you sold real estate in New Jersey, do not include the 2%
nonresident seller’s tax payment on this line. If your employer reported your total earnings on one W-2,
allocate the New Jersey Income Tax withheld between your part-year resident and part-year nonresident
returns if you earned wages from New Jersey as a both resident and as a nonresident.

b. Line 51. Enter the amount of estimated payments made to New Jersey while you were a nonresident. If
you sold real estate in New Jersey, include the 2% nonresident seller’s tax payment on this line. If you
made estimated payments both as a resident and as a nonresident, enter on your part-year resident
return the payment(s) made to meet the tax liability for your period of New Jersey residency. Enter on the
part-year nonresident return the payment(s) made to satisfy your tax liability during the part of the year
you were a nonresident. Also, enter any amounts paid to qualify for an extension of time to file.

10. Pass-Through Business Alternative Income Tax Credit (line 56). For more information on the Pass-
Through Business Alternative Income Tax Credit, visit our website.

GIT-6
January 2025
28
 Part-Year Residents and Nonresidents
Understanding Income Tax

11. Allocation of Wage and Salary Income Earned Partly Inside and Outside New Jersey. Complete this
section only when you have wage/salary income earned partly inside and partly outside New Jersey, and you
cannot readily determine the amount of wage/salary income from New Jersey. For purposes of completing
this section, “total days” on line 70 means the number of days covered by your part-year return. Complete
lines 69 to 75 accordingly.

Check the box at line 15 if you complete this section.

GIT-6
January 2025
29
 Part-Year Residents and Nonresidents
Understanding Income Tax

Sample Returns
Part-Year Resident/Part-Year Nonresident
• Arnav and Kashvi Patel are married and they file jointly. They have two dependents: their 1-year-old child
and Arnav’s 67-year-old mother;

• The family moved to New Jersey on April 1. They rented an apartment for $1,800 a month;

• Arnav worked for the same New Jersey employer all year; wages for the year were $97,000;

• Kashvi’s wages for a part-time job in New Jersey from September to December were $6,000;

• The couple received $1,400 in interest on their joint accounts and $480 in dividends for the year;

• On March 1, they sold 200 shares of jointly held stock in ABC Corp. for $3,500. They purchased the stock
in 2019 for $2,800;

• They won $75 in the New York Lottery on February 3 and $62 in the New Jersey Lottery on July 29;

• New Jersey Income Tax withheld: $1,983 for Arnav and $104 for Kashvi;

• They made four estimated tax payments of $50 each to New Jersey on April 15, June 15, September 15,
and January 15 of the following year.

GIT-6
January 2025
30
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
31
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
32
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
33
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
34
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
35
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
36
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
37
Part-Year Residents and Nonresidents
Understanding Income Tax

GIT-6
January 2025
38
 Part-Year Residents and Nonresidents
Understanding Income Tax

Worksheet H - Property Tax Deduction/Credit

Review the eligibility requirements on page 25 before completing Worksheet H. Part-year residents, see page 30.

Complete both columns of this worksheet to find out whether the deduction or the credit is better for you.

1. Property Taxes. Enter the property taxes from line 40a, Form NJ-1040.
Senior Freeze (Property Tax Reimbursement) applicants must use their base year amount. 1. 2,916
(See instructions on page 30.)

2. Property Tax Deduction. Is the amount on line 1 of this worksheet $15,000 or more ($7,500 or more
if you and your spouse file separate returns but maintained the same main home)?
Yes. Enter $15,000 ($7,500 if you and your spouse file separate returns but maintained the
same main home).
No. Enter the amount from line 1. 2. 2,916 __

STOP — if you are claiming a credit for taxes paid to other jurisdictions.
Complete only lines 1 and 2. Then complete Schedule NJ-COJ and Worksheet I.
(See instructions on page 31.)
Column A Column B
3. Taxable Income (From line 39 of Form NJ-1040) ..................................................................... 3. 76,410 3. 76,410
4. Property Tax Deduction (From line 2 above).............................................................................. 4. 2,916 4. -0-
5. New Jersey Taxable Income (Subtract line 4 from line 3) ..................................................... 5. 73,494 5. 76,410
6. Tax on line 5 amount (From Tax Table or Tax Rate Schedules) .......................................... 6. 1,417 6. 1,520
7. Subtract line 6, column A from line 6, column B .................................................................................................................. 7. 103
8. Is the line 7 amount $50 or more ($25 if you and your spouse file separate returns but maintained the same main home?)
Part-year residents, see page 30 before answering “No.”
Yes. The Property Tax Deduction is more beneficial for you. Make the following entries on your return.
Form NJ-1040 Enter amount from:
Line 41 Line 4, column A
Line 42 Line 5, column A
Line 43 Line 6, column A
Line 56 Make no entry
No. The Property Tax Credit is more beneficial for you. Make the following entries on your return.
Form NJ-1040 Enter amount from:
Line 41 Make no entry
Line 42 Line 5, column B
Line 43 Line 6, column B
Line 56 $50 ($25 if you and your spouse file separate returns but maintained the same
main home). Part-year residents must prorate this amount. (See instructions on
page 30.)

(Keep for your records)

GIT-6
January 2025
39
 Part-Year Residents and Nonresidents
Understanding Income Tax

Connect With Us.

Email your State tax questions;
Visit a Regional Information Center;
Call (609) 292-6400;
Subscribe to our NJ Tax Alert E-News;
Follow us on:

The forms and amounts referred to in this Bulletin are those for Tax Year 2024. This document is designed to
provide guidance to taxpayers and is accurate as of the date issued.

Any reference in this publication to a spouse also refers to a spouse who entered into a valid same-sex marriage
in another state or foreign nation and a partner in a civil union (CU) recognized under New Jersey law.

GIT-6
January 2025
40