2022 CBT-100S 
General Instructions for New Jersey S Corporation Business Tax Return and Related Forms

                                                                          group). Federal S corporations that have not elected and been 
Electronic Filing Mandate                                                 authorized to be New Jersey S corporations must complete 
All taxpayers and tax preparers must file Corporation Business            Form CBT-100 or Form CBT-100U as though no election had 
Tax returns and make payments electronically. This mandate in-            been made under I.R.C. § 1362.  
cludes all returns, estimated payments, extensions, and vouch-
ers. Visit the Division’s website or check with your software             Corporations Claiming P.L. 86-272. Foreign corporations that 
provider to see if they support any or all of these filings.              meet the filing requirements and whose income is immune from 
                                                                          tax pursuant to Public Law 86-272, must obtain and complete 
To file and pay the annual report electronically, visit the Division      Schedule N, Nexus – Immune Activity Declaration, and all of the 
of Revenue and Enterprise Services website.                               schedules from the CBT-100S. In addition, taxpayers must in-
                                                                          clude a copy of the Nexus Questionnaire and remit the minimum 
                                                                          tax with the CBT-100S. 
Before You Begin
Read all instructions carefully before completing returns.                Note:  Check the box on page 1 to indicate the corporation is 
                                                                               claiming P.L. 86-272.
Include a complete copy of the federal Form 1120-S and 
all related forms and schedules. See Technical Bulletin,                  Qualified Subchapter S Subsidiaries. A corporation that has 
TB-98(R), Federal Return and the Forms and Schedules to In-               been accepted as a New Jersey Qualified Subchapter S Sub-
clude with the Corporation Business Tax Return Pursuant to P.L.           sidiary (QSSS) is required to file Form CBT-100S annually, in-
2020, C. 118.                                                             cluding only page 1 reflecting zero income, the Annual General 
                                                                          Questionnaire, and when applicable Schedule PC, and remit the 
Personal Liability of Officers and Directors                              minimum tax. The parent is obligated to report all assets, liabili-
Any officer or director of any corporation who shall distribute or        ties, income, and expenses of the QSSS on a consolidated ba-
cause to be distributed any assets in dissolution or liquidation          sis on its CBT-100S, CBT-100, CBT-100U, or BFC-1 return. For 
to the stockholders without having first paid all corporation fran-       information on electing to become a New Jersey QSSS, see the 
chise taxes, fees, penalties and interest imposed on said corpo-          Division of Revenue and Enterprise Services’ website.
ration, in accordance with N.J.S.A. 14A:6-12, N.J.S.A. 54:50-18 
and other applicable provisions of law, shall be personally liable        Foreign Corporations That Own New Jersey Partnerships. A 
for said unpaid taxes, fees, penalties, and interest. Compliance          foreign corporation that owns a New Jersey partnership must file 
with N.J.S.A. 54:50-13 is also required in the case of certain            Form CBT-100S to claim the tax paid on their behalf by the part-
mergers, consolidations, and dissolutions.                                nership. The foreign corporation cannot transfer the tax paid by 
                                                                          the partnership on its behalf to any of its shareholders.
Distortion of Net Income                                                  Out-of-Business Corporations. Corporations that are “out of 
The Director is authorized to adjust and redetermine items of             business” but have not dissolved or withdrawn their authority to 
gross receipts and expenses as may be necessary to make a                 do business in New Jersey, are still obligated to file a return. A 
fair and reasonable determination of tax payable under the Cor-           dissolution or withdrawal date must be established on or before 
poration Business Tax Act. For details regarding the conditions           the last day of the current taxable period in order to avoid having 
under which this authority may be exercised, see regulation               to file a return for the next tax year.
N.J.A.C. 18:7-5.10.
                                                                          New Corporations. Every New Jersey corporation acquires a 
Accounting Method                                                         taxable status beginning 1) on the date of its incorporation, or 
The return must be completed using the same method of ac-                 2) on the first day of the month following its incorporation if so 
counting, cash, accrual or other basis, that was employed in the          stated in its certificate of incorporation. Every corporation that 
taxpayer’s federal income tax return.                                     incorporates, qualifies, or otherwise acquires a taxable status 
                                                                          in New Jersey must file a Corporation Business Tax return. A 
Riders                                                                    tax return must be filed for each fiscal period, or part thereof, 
If space is insufficient, include riders in the same form as the          beginning on the date the corporation acquired a taxable sta-
original printed sheets. The riders must be numbered and clearly          tus in New Jersey regardless of whether it had any assets or 
list the schedule(s) and line(s) of each corresponding rider item.        conducted any business activities. No return can cover a period 
                                                                          exceeding 12 months, even by a day.
Federal/State Tax Agreement                                               S Corporation Election. Every corporation that elects to be a 
The New Jersey Division of Taxation and the Internal Revenue              New Jersey S corporation must file a New Jersey S Corpora-
Service participate in a federal/State program for the mutual ex-         tion or New Jersey QSSS Election (Form CBT-2553) within one 
change of tax information to verify the accuracy and consistency          calendar month subsequent to the federal S corporation filing 
of information reported on federal and New Jersey tax returns.            requirement.
                                                                          Financial Business Corporations. Corporations that qualify 
Corporations Required to File                                             as financial businesses, those that derive 75% of their gross 
Every corporation that has elected and qualifies pursuant to              income from the financial activities enumerated at N.J.A.C. 18:7-
Section 1361 of the Internal Revenue Code and has qualified               1.16(a)1 through (a)7, must file the New Jersey Corporation 
and been accepted as a New Jersey S corporation is required               Business Tax Return for Banking and Financial Business, Form 
to file a CBT-100S (unless they elect to be part of a combined 

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BFC-1 or the Corporation Business Tax Combined Return, Form                would not report the income on Form CBT-100S for the months 
CBT-100U.                                                                  during which the member was part of the combined group. If de-
                                                                           termining what amount of income is attributable to the portions 
Professional Corporations. Corporations formed under                       of the twelve-month period are for the periods before and after 
N.J.S.A. 14A:17-1 et seq. or any similar laws of a possession              departing a combined group, the taxpayer must prorate their in-
or territory of the U.S., a state, or political subdivision thereof,       come/losses and receipts. 
must complete Schedule PC. Examples of licensed profession-
als include certified public accountants, architects, optometrists, 
professional engineers, land surveyors, land planners, chiroprac     -
                                                                           When to File
tors, physical therapists, registered professional nurses, dentists, 
osteopaths, physicians and surgeons, doctors of medicine, doc-             2022 Accounting Periods and Due Dates
tors of dentistry, podiatrists, veterinarians, and attorneys.              The 2022 S Corporation Business Tax return should only be 
                                                                           used for accounting periods ending on and after July 31, 2022, 
Inactive Corporations. Inactive corporations that, during the              through June 30, 2023. 
period covered by the return, did not conduct any business, did 
not have any income, receipts or expenses, did not own any                 In general, the New Jersey Corporation Business Tax returns 
assets, did not make any distributions, and did not have any               and payments, except estimated payments, are due 30 days 
change in ownership, must complete the Certificate of Inactivity           after the original due date of the federal corporate income tax 
section on page 1. Payment for the related minimum tax liability           return. For the administrative convenience of both the Division 
and the installment payment (if applicable) must be submitted              and taxpayers, returns filed by S corporations the 15th day of 
electronically. See the Page 1 section for more information.               the fourth month following the close of the privilege period are 
                                                                           considered timely even if that date is more than 30 days after the 
Combined Reporting                                                         federal due date. If the due date falls on a weekend or a legal 
New Jersey enacted mandatory combined reporting for unitary                holiday, the return and payment are due on the following busi-
businesses for tax years ending on and after July 31, 2019.                ness day. Use the following schedule for 2022 CBT-100S forms 
Groups of companies that have common ownership and are en-                 and payments:
gaged in a unitary business, where at least one member of the              If accounting   July 31,  Aug. 31,  Sept. 30,  Oct. 31, Nov. 30,  Dec. 31, 
group is subject to the New Jersey Corporation Business Tax,               period ends on: 2022    2022 2022            2022       2022     2022
are required to calculate their tax liability on a combined basis on       Due date for    Nov. 15,  Dec. 15,  Jan. 15,  Feb. 15,  Mar. 15, Apr 15, 
Form CBT-100U, Corporation Business Tax Unitary Return.                    filing is:      2022    2022 2023            2023       2023     2023
                                                                           If accounting   Jan. 31,  Feb. 28,  Mar. 31, Apr. 30,   May 31,  June 30, 
A New Jersey S corporation is not included as a member of a                period ends on: 2023    2023 2023            2023       2023     2023
combined group unless the New Jersey S corporation affirma-                Due date for    May 15, June 15,  July. 15,  Aug. 15,  Sept. 15,  Oct. 15, 
                                                                           filing is:      2023    2023 2023            2023       2023     2023
tively elects to be included as a member of the combined group 
on the CBT-100U.                                                           Calendar or fiscal accounting year is the same accounting pe-
                                                                           riod upon which the taxpayer is required to report to the United 
Note: The law change did not impact the treatment of parent                States Treasury Department for federal income tax purposes. 
       New Jersey S corporations and New Jersey qualified sub-             Please note the ending month of the accounting period for 
       chapter S subsidiaries. The parent of New Jersey quali-             federal returns and New Jersey returns must match, however, 
       fied subchapter S subsidiary(ies) must include the figures          the tax return year for the federal and State returns may differ. 
       from itself and all the New Jersey QSSSs.                           (i.e., a tax year ending 8/31/22 may be filed on a 2021 federal 
                                                                           1120-S; the same tax year must be filed on a 2022 New Jersey 
A member of a combined group filing a New Jersey combined 
                                                                           CBT-100S.) All accounting periods must end on the last day of 
return does not have to file a separate return for the privilege 
                                                                           the month, except that taxpayers may use the same 52-53 week 
period or portion of the privilege period thereof that the taxpayer 
                                                                           accounting year that is used for federal income tax purposes, 
was included as a member of the combined return. A combined 
                                                                           see N.J.A.C. 18:7-2.3. The Division is aware that taxpayers 
group member with business operations that are independent 
                                                                           cannot properly input dates for 52-53 week accounting years. In 
of the unitary business activity of the combined group must re-
                                                                           this case, taxpayers will need to contact the Division for assis-
port such income on Schedule X. Schedule X is submitted with 
                                                                           tance. Returns for prior tax years are available on the Division’s 
the combined return. The member will not complete a separate 
                                                                           website.
return.
Visit the Division’s website for information about combined                Extension of Time to File
reporting.                                                                 The Tentative Return and Application for Extension of Time to 
                                                                           File, Form CBT-200-T, must be filed and paid electronically. 
Note:  A taxpayer that has nexus with New Jersey that is part of           You can also check with your software provider to see if the 
       a combined group or affiliated group, but excluded from             software you use supports filing of extensions. If an extension is 
       the New Jersey combined return must file a separate                 requested, the corporation should notify all shareholders of such 
       return.                                                             request
Former Member of Combined Group. A taxpayer that was                       Corporations will automatically receive a six-month extension 
a member of a combined group filing a New Jersey combined                  only if they have paid at least 90% of the tax liability and timely 
return for part of the group privilege period and subsequently             filed Form CBT-200-T.
departs the combined group to file on a separate entity basis, 
must report the income for months subsequent to departing the              An extension of time is granted only to file your New Jersey Cor-
combined group on a separate return (Form CBT-100S) unless                 poration Business Tax return. There is no extension of time to 
the taxpayer joined a second combined group that files a New               pay the tax due. The Division will notify you only if we deny your 
Jersey combined return. The taxpayer filing a separate return              extension request, but not until after you actually file your return. 

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Penalties and interest are imposed whenever tax is paid after           liability. Also, a penalty of $100 for each month the return is de-
the original due date.                                                  linquent may be imposed.
Note:  An extension payment must include any applicable pro-            Late Payment Penalty. 5% of the balance of tax due paid after 
     fessional corporation (PC) fees and/or installment pay-            the due date for filing the return may be imposed.
     ments. See the online application for more information. 
                                                                        Interest. The annual interest rate is 3% above the average pre-
                                                                        dominant prime rate on outstanding balances for every month 
                                                                        or part of a month the tax is unpaid, compounded annually. At 
Payment of Tax 
The balance of tax due must be paid in full by the original due         the end of each calendar year, any tax, penalties, and interest 
date of the return.                                                     remaining due will become part of the balance on which interest 
                                                                        will be charged. The interest rates assessed by the Division of 
In addition, corporations are required to make installment pay-         Taxation are published online.
ments of estimated tax. The requirement for making these pay-
ments is based on the amount of the total tax liability shown on        Note: The average predominant prime rate is the rate as deter-
the most recent return.                                                       mined by the Board of Governors of the Federal Reserve 
                                                                              System, quoted by commercial banks to large businesses 
•  If the 2022 total tax liability is greater than $375, the tax-             on December 1st of the calendar year immediately pre-
 payer must make installment payments towards 2023. These                     ceding the calendar year in which payment was due or as 
 payments are to be made electronically on Form CBT-150                       redetermined by the Director in accordance with N.J.S.A. 
 and are due on or before the 15th day of the 4th, 6th, 9th, and              54:48-2.
 12th months of the tax year. Taxpayers with gross receipts 
 greater than or equal to $50,000,000 must make installment             Collection Fees. In addition, if the tax bill is sent to our col-
 payments on the 15th day of the 4th, 6th, and 12th months of           lection agency, a referral cost recovery fee of 11% of any tax, 
 the tax year.                                                          penalties, and interest due will be added to the liability in accor-
                                                                        dance with N.J.S.A. 54:49-12.3. If a certificate of debt is issued 
•  If the 2022 total tax liability is $375 or less, installment         for the outstanding liability, a fee for the cost of collection of the 
 payments may be made as indicated above OR in lieu of                  tax may also be imposed.
 making installment payments, the taxpayer may make a pay-
 ment of 50% of the 2022 total tax liability.                           Underpayment of Estimated Tax. To calculate the amount of 
                                                                        interest for the underpayment of estimated tax, complete either 
How to Pay                                                              Form CBT-160-A or Form CBT-160-B. If the taxpayer qualifies 
To make payments electronically, go to the Division of Taxation’s       for any of the exceptions to the imposition of interest for any of 
website. Taxpayers that do not have access to the internet may          the installment payments, Part II must be completed and submit-
call the Division’s Customer Service Center at (609) 292-6400.          ted with the return as evidence of such exception. 
Taxpayers with a prior year liability of $10,000 or more in any         Civil Fraud. If any part of an assessment is due to civil fraud, 
tax are required to make their payments for all taxes by Elec-          there shall be added to the tax an amount equal to 50% of the 
tronic Funds Transfer (EFT). For information or to enroll in the        assessment in accordance with N.J.S.A. 54:49-9.1.
program, visit the Division of Revenue and Enterprise Services’ 
website, call (609) 292-9292, fax (609) 984-6681, or write to NJ        Transacting Business Without a Certificate of Authority. In 
Division of Revenue and Enterprise Services, EFT Section, PO            addition to any other liabilities imposed by law, a foreign corpo-
Box 191, Trenton, NJ 08646-0191.                                        ration that transacts business in this State without a certificate of 
                                                                        authority shall forfeit to the State a penalty of not less than $200, 
Note:  Taxpayers who are required to remit payments by EFT              nor more than $1,000 for each calendar year, not more than 5 
     can satisfy the EFT requirement by making e-check or               years prior thereto, in which it shall have transacted business in 
     credit card payments.                                              this State without a certificate of authority. N.J.S.A. 14A:13-11(3).

Penalties and Interest                                                  Amended Returns
Insufficiency Penalty. If the amount paid with the Tentative Re-        Beginning with returns for Tax Year 2019 and after, taxpayers 
turn, Form CBT-200-T, is less than 90% of the tax liability com-        must submit amended returns electronically. 
puted on Form CBT-100S, or in the case of a taxpayer whose 
preceding return covered a full 12-month period, is less than the       Final Determination of Net Income by Federal Government. 
amount of the tax computed at the rates applicable to the current       Any change or correction made by the Internal Revenue Ser-
accounting year but on the basis of the facts shown and the law         vice must be reported to the Division within 90 days. Amended 
applicable to the preceding accounting year, the taxpayer may           NJ-K-1s must be provided to the appropriate shareholders. 
be liable for a penalty of 5% per month or part of a month not to 
exceed 25% of the amount of underpayment from the original 
due date to the date of actual payment.                                 Page 1 Line-by-Line Instructions
                                                                        Enter the federal employer identification number, New Jersey 
Late Filing Penalty. 5% per month or part of a month on the             corporation number, corporation name and complete address 
amount of underpayment not to exceed 25% of that underpay-              and ZIP Code in the space provided on the return.
ment, except if no return has been filed within 30 days of the 
date on which the first notice of delinquency in filing the return      Check the appropriate box to indicate whether this is the initial 
was sent, the penalty will accrue at 5% per month or part of a          return or an amended return. 
month of the total tax liability not to exceed 25% of such tax 

                                                                   - 3 -

If filing an amended return, enter the applicable code in the            Schedule A-GR.) Enter the greater of the computed tax liability 
boxes provided. If using code 10, “Other,” enter the reason in the       or the amount from Schedule A-GR, line 7. 
lines provided. If more space is needed, include a rider.
                                                                         Note:  The surtax does not apply to New Jersey S corporations.
 1.     Change in allocation factor
 2.     IRS audit                                                        Line 5 – Installment Payment
 3.     Amended federal 1120-S filed                                     Taxpayers are required to make installment payments of esti-
 4.     To take credit for payments/payments made by a                   mated tax. The requirement for making these payments is based 
        partnership                                                      on the amount of the total tax liability shown on the most recent 
 5.     Adjustments to ENI                                               return.
 6.     To change credit request to refund request or refund             •                                                 the tax-
                                                                            If the 2022 total tax liability is greater than $375,
        request to credit request
                                                                           payer must make installment payments towards 2023. These 
 7.     Change in filing period
                                                                           payments are to be made electronically on Form CBT-150 
 8.     Change in tax credits reported
                                                                           and are due on or before the 15th day of the 4th, 6th, 9th, and 
 9.     Adding or subtracting a combined return member
                                                                           12th months of the tax year. Taxpayers with gross receipts 
 10.    Other
                                                                           greater than or equal to $50,000,000 must make installment 
Provide the remaining information requested on the top portion             payments on the 15th day of the 4th, 6th, and 12th months of 
of the return. The federal business activity code should be taken          the tax year. Information on making these payments can be 
from the taxpayer’s federal tax return. Provide the location of the        found on the Division’s website. 
corporate books as well as a contact person and phone num-               •  If the 2022 total tax liability is $375, installment payments 
ber. If the corporation is a professional corporation, is claiming         may be made as indicated above OR in lieu of making install-
P.L. 86-272, or is a qualified subchapter S subsidiary, check the          ment payments, the taxpayer may make a payment of 50% 
box. See Corporations Required to File on page 1 for required              of the 2022 total tax liability. For taxpayers who qualify and 
forms and schedules.                                                       want to take advantage of this option, enter on line 5, 50% of 
All corporations must complete page 1, the Annual General                  the amount on line 4. This will become part of the payment to 
Questionnaire, and Schedules A, A-2, A-3, A-4, and A-GR of the             be made with the 2022 return and installment payments will 
return.                                                                    not be required. This payment should be claimed as a credit 
                                                                           when filing the 2023 return.
Line 1 – Taxable Net Income Subject to Federal Corporate 
Income Taxation                                                          Line 6 – Professional Corporation Fees
Enter amount from Schedule A, Part II, line 5. If zero or less,          Enter amount from Schedule PC, Part II, line 7. 
enter zero.
                                                                         Note:  Check the box on page 1 to indicate the corporation is a 
Line 2 – Amount of Tax                                                          professional corporation.
Multiply line 1 by the applicable tax rate: 
                                                                         See Schedule PC instructions for information about filing re-
•  If the total of Schedule A, Part II, line 5 plus Schedule O,          quirements and examples of professional corporations. 
 Part III, line 31 (if applicable) is greater than $100,000, the 
                                                                         Line 7 – Total Tax and Professional Corporation Fees 
 tax rate is 9% (.09).
                                                                         Enter the total of lines 4, 5, and 6.
•  If the total of Schedule A, Part II, line 5 plus Schedule O, 
 Part III, line 31 (if applicable) is greater than $50,000 and           Line 8a – Payments and Credits
 less than or equal to $100,000, the tax rate is 7.5% (.075).            Include on this line:
 Tax periods of less than 12 months qualify for the 7.5% rate            • Installment tax payments made for 2022;
 if the prorated total of Schedule A, Part II, line 5 plus Sched-
 ule O, Part III, line 31 does not exceed $8,333 per month.              • Amounts paid with tentative return (form CBT-200-T);
•  If the total of Schedule A, Part II, line 5 plus Schedule O,          • Any overpayment from the preceding tax return that the tax-
 Part III, line 31 (if applicable) is $50,000 or less, the tax             payer elected to have credited to the current year’s tax. Do 
 rate is 6.5% (.065). Tax periods of less than 12 months qualify           not include any amount of the overpayment that the taxpayer 
 for the 6.5% rate if the prorated total of Schedule A, Part II,           elected to have refunded.
 line 5 plus Schedule O, Part III, line 31 does not exceed               Note:  Professional corporation installment payments from the 
 $4,166 per month.                                                              prior year may not be used to offset any current year tax 
                                                                                liability and are not eligible for refund.
For taxpayers with total entire net income that is not subject to 
federal income taxation or such portion that is allocable to New         Line 8b – Payments Made by Partnerships 
Jersey, there is no tax imposed. However, minimum tax require-           Include the total payments made by partnerships on behalf of 
ments apply.                                                             the taxpayer that are reported in column 7 on Schedule P-1. 
                                                                         Submit copies of the NJK-1s or K-1s (as applicable) reflecting 
Line 3 – Tax Credits                                                     payments made by each partnership entity. 
Enter amount from Schedule A-3, Part I, line 30. Include the ap-
plicable credit form(s) with the return. See Schedule A-3 instruc-       Line 8c – Refundable Tax Credits 
tions for more information.                                              Enter the amount from Schedule A-3, Part II, line 6. Include the 
                                                                         applicable credit form(s) with the return. See Schedule A-3 in-
Line 4 – Tax Liability                                                   structions for more information.
Subtract line 3 from line 2. If this amount is less than $1,500, 
complete Schedule A-GR to determine if there is a minimum tax 
liability. (Members of affiliated groups, see the instructions for 

                                                                    - 4 -

Line 9 – Balance of Tax Due                                                 Note:  An overpayment of tax by a New Jersey S corporation 
If line 8d is less than line 7, subtract line 8d from line 7 and enter             can only be credited to a combined group in which the 
the difference. If line 8d is more than line 7, skip line 9 and con-               New Jersey S corporation elects to be included. Other-
tinue with line 10.                                                                wise, an overpayment of tax by a New Jersey S corpora-
                                                                                   tion will not be credited to any combined group.
Line 10 – Pro Rata Share of S Corp Income for Nonconsent-
ing Shareholders                                                            Certification of Inactivity
Enter the amount from Schedule K, Part VII, line 6, column C. If            Inactive corporations must complete page 1, the Annual General 
the S corporation was completely liquidated during the tax year             Questionnaire, and Schedules A, A-2, A-3, A-4, and A-GR of the 
and Schedule K Liquidated was completed, add the amounts                    CBT-100S. A corporate officer must sign and certify that the cor-
from Part VII, line 6 columns C and E and enter the total.                  poration did not conduct any business, did not have any income, 
Line 11a – Gross Income Tax Paid on Behalf of Nonconsent-                   receipts, or expenses, and did not own any assets during the 
ing Shareholders                                                            entire period covered by the tax return.
Enter the amount from Schedule K, Part VII, line 6, column F. If 
the S corporation was completely liquidated during the tax year             Signature 
and Schedule K Liquidated was completed, enter the amount                   Each return must be signed by an officer of the corporation who 
from Part VII, line 6, column H. The tax rate on net pro rata               is authorized to attest to the truth of the statements contained 
share of S corporation income allocated to New Jersey for non-              therein and to acknowledge that they understand they are re-
consenting shareholders is 10.75% (.1075).                                  quired to include copies of their federal return(s), forms, and 
                                                                            schedules. The fact that an individual’s name is signed on the 
Note:  The S corporation cannot make payments on behalf of                  return shall be prima facie evidence that such individual is au-
    consenting shareholders. Any payments made on behalf                    thorized to sign the return on behalf of the corporation. 
    of consenting shareholders will be disallowed by the Di-
    vision. The S corporation will be required to file a refund             Tax preparers who fail to sign the return or provide their as-
    claim for any payments made on behalf of consenting                     signed tax identification number shall be liable for a $25 penalty 
    shareholders.                                                           for each such failure. If the tax preparer is not self-employed, 
                                                                            the name of the tax preparer’s employer and the employer’s tax 
Line 11b – Pass-Through Business Alternative Income Tax                     identification number should also be provided. In the case of a 
Credit Applied to Gross Income Tax Paid on Behalf of Non-                   corporation in liquidation or in the hands of a receiver or trustee, 
consenting Shareholders                                                     certification shall be made by the person responsible for the con-
Enter the amount from Form 329. Do not enter more than the                  duct of the affairs of such corporation.
amount on line 11a. Include Form 329 with the return. See Form 
329 instructions for more information.
                                                                            Annual General Questionnaire 
Line 11c – Balance of Pass-Through Business Alternative                     All taxpayers must answer all questions on this schedule. If nec-
Income Tax Credit                                                           essary, include a rider detailing the information requested in the 
Subtract line 11b from line 11a and enter the result.
                                                                            questions.
Line 12 – Penalty and Interest Due
Include any penalties and interest. See the Penalties and Inter-
est section for information.                                                Schedule A 
                                                                            Computation of Taxable Net Income 
Amount Due or Overpayment - Lines 13–17
Compare line 8d to the total of lines 7, 11c, and 12.                       Every taxpayer must complete this schedule. 

• If line 8d is less than the total of lines 7, 11c, and 12, com-                     Taxpayers must include a copy of the federal 
  plete line 13.                                                                      return and any forms or schedules that accompa-
• If line 8d is more than the total of lines 7, 11c, and 12, com-                     nied the return that was filed with the Internal Rev-
  plete lines 14 through 17.                                                          enue Service. Failure to include the forms and 
                                                                            schedules will result in an incomplete New Jersey Corpora-
Line 13 – Total Balance Due                                                 tion Business Tax return and the taxpayer may be assessed 
Enter the total of lines 9, 11c, and 12.                                    penalties and interest for noncompliance. See Technical Bul-
                                                                            letin, TB-98, Federal Return and the Forms and Schedules to 
Line 14 – Amount Overpaid                                                   Include with the Corporation Business Tax Return Pursuant 
Subtract the total of lines 7, 11c, and 12 from the amount on               to P.L. 2020, C. 118.
line 8d. 
Line 15 – Refund                                                            Part I 
Enter the amount of your overpayment that you want refunded.                Line 4 – Net gain (loss) from Form 4797 
                                                                            Include a rider or schedules showing the same information 
Line 16 – Credit to 2023                                                    shown on federal Form 4797. Gains and losses resulting from 
Enter the amount of your overpayment that you want to credit to             the disposition of property where an I.R.C. § 179 expense de-
your 2023 tax liability.                                                    duction was passed through to S corporation shareholders are 
                                                                            not reported on federal Form 4797, and should be reported on 
Line 17 – Credit to a Combined Group                                        Schedule A, Part I, line 26. If a sale of shares of stock or partner-
Enter the amount of your overpayment that you want to credit to 
                                                                            ship interest resulted in a taxable transfer of a controlling interest 
a combined group. Also include the unitary ID Number and tax 
                                                                            in certain commercial real property under N.J.S.A. 54:15C-1, 
return year to which it is to be applied. 
                                                                            indicate on a rider.

                                                                       - 5 -

Line 13 – Interest                                                       Line 37b – Other deductions and additions
Include a copy of federal Form 8916A and/or federal Form 8990            This includes, but is not limited to: 
if completed.
                                                                         • Adjustments for which a place has not been provided some-
Line 21 – Ordinary Income From Trade or Business                           where else on the return; 
Activities                                                               • Gross income, less deductions and expenses in connection 
The amount on line 21 must agree with line 21, page 1, of the              with that income, from sources outside the United States not 
taxpayer’s federal Form 1120-S.                                            included in federal taxable income; 
If the corporation has not filed a separate federal income tax           • The net effect of the elimination of nonoperational and non-
return, the taxpayer must explain and reconcile the differences            unitary partnership income and expenses from Schedule O, 
on a rider.                                                                Part I, line 36;
Lines 22a to 30 – Include all items of income and expense that           • The add back of any deductions for research and experimen-
pass through to the individual shareholders as reported on the             tal expenditures, to the extent that those research and experi-
federal Schedule K. Be sure to report Part I, lines 26, 27, and 28         mental expenditures are qualified research expenses or basic 
as deductions.                                                             research payments for which an amount of credit is claimed 
                                                                           pursuant to section 1 of P.L.1993, c.175 (C.54:10A-5.24) un-
Charitable contributions are limited to 10% of taxable income              less those research and experimental expenditures are also 
for New Jersey purposes and should be stated separately on                 used to compute a federal credit claimed pursuant to I.R.C. § 
line 30.                                                                   41. 
Built-in gains must be reported on Part I, line 23d as a gross           Include separate riders explaining any items reported. 
amount exclusive of any net effects of taxes paid by the 
corporation.                                                             Line 37c – Related party interest addback
                                                                         Enter the total amount of interest deducted on Schedule A that 
Line 31 – The amount on line 31 must reflect entire net income           was paid to related members and reported on Schedule G, 
in the same manner and to the same extent as if no federal in-           Part I. See Schedule G instructions for more information. 
come tax S or New Jersey S election had been made.
                                                                         Line 37d – Related party intangible expenses and costs 
Line 33 – Interest on federal, state, municipal, and other               addback 
obligations                                                              Enter the total amount of intangible expenses and costs de-
Include any interest income that was not taxable for federal in-         ducted on Schedule A that was paid to related members and 
come tax purposes and was not included in taxable net income             reported on Schedule G, Part II. See Schedule G instructions for 
reported on Part I, line 31.                                             more information. 
Line 34 – New Jersey State and other states taxes                        Line 37e – Other federally exempt income
Enter the total taxes paid or accrued to the United States, a            For tax years beginning on and after January 1, 2018, all income 
possession or territory of the United States, a state, a political       that was exempt for federal income tax purposes under any pro-
subdivision thereof, or the District of Columbia, or to any foreign      vision of the Internal Revenue Code or any federal law must be 
country, state, province, territory or subdivisions thereof, on or       added back. If such amounts were not added back on any other 
measured by profits or income, business presence or business             line of Schedule A, include such amounts onPart I, line 37e    and 
activity, or any sales and use tax paid by a utility vendor, taken       include a rider detailing the amounts and the provisions of the 
as a deduction on Schedule A and reflected on Part I, line 31.           Internal Revenue Code.
For additional information, see Technical Bulletin TB-80, Add-
back of Other States’ Taxes, and the Schedule H instructions.            Note:  Items of income excluded from federal taxable net income 
                                                                                 pursuant to the specific terms of a treaty do not have to 
Line 35 – Taxes paid by the corporation on behalf of the                         be added back to entire net income.
shareholder
Any tax paid by the corporation on behalf of any shareholder             Line 38 – Entire net income before net operating loss de-
should not have been deducted as an expense on Schedule A.               duction and dividend exclusion
However, if the corporation expensed such taxes on Schedule A,           Enter the net of lines 32 through 37e.
these taxes must be included in Part I, line 34.
                                                                         Note:  The amount reported on Schedule A, line 36b must be 
Line 36a – Depreciation modification being added to income                       subtracted when netting lines 32 through 37e. 
Enter the depreciation and other adjustments being added to 
income from Schedule S. See Schedule S instructions for more             Line 39 – Allocation Factor from Schedule J
information.                                                             Enter allocation factor from Schedule J. If all receipts were 
                                                                         derived from only New Jersey sources, enter 1.000000. See 
Line 36b – Depreciation modification being subtracted from               Schedule J instructions for more information. 
income
Enter the depreciation and other adjustments being subtracted            Line 40 – Allocated entire net income/(loss) before net oper-
from income from Schedule S. See Schedule S instructions for             ating loss deductions and dividend exclusion 
more information.                                                        Multiply line 38 by line 39 and enter the result. If zero or less, 
                                                                         also enter zero on line 45.
Line 37a – I.R.C. § 78 Gross-up 
The portion of any I.R.C. § 78 gross-up included in dividend             Note:   A net operating loss for a tax year may be carried forward 
                                                                                 as a net operating loss deduction to a succeeding year. 
income on Part I, line 23b that is not excluded/deducted from                    An S corporation may carry forward losses generated 
entire net income on Part I, line 43 may be deducted on this line.               as a C corporation prior to its New Jersey S election. A 
Include a copy of federal foreign tax credit, Form 1118. 

                                                                    - 6 -

      net operating loss is the excess of allowable deductions            corporate income taxation. Enter the amount of net operating 
      over gross income used in computing entire net income.              loss deduction from Form 500S.
      Neither a net operating loss deduction nor the dividend 
      exclusion is an allowable deduction in computing a net              Line 5 – Taxable Net Income subject to federal corporate 
      operating loss. Post-allocation net operating losses expire         income taxation
      20 privilege periods after the loss was originally gener-           Subtract line 4 from line 3 and also enter the result on page 1, 
      ated. Information on the net operating losses must be               line 1. 
      detailed on Form 500S. 

            Net operating losses/net operating loss carryovers            Schedule A-2 
            now occur on a post-allocation basis. If the tax-             Cost of Goods Sold
            payer has net operating losses from before July 31,           The amounts reported on this schedule must be the same as 
            2019, those unused unexpired pre-allocation net               the amounts reported on the taxpayer’s federal Form 1125-A of 
operating loss carryovers must be converted to prior net oper-            the federal pro forma or federal return, whichever is applicable. 
ating loss conversion carryovers using the allocation factor              Include Form 1125-A with the return.
from the taxpayer’s last tax year prior to the change to post-al-
location net operating losses. For more information, see Tech-
nical Bulletin, TB-94, General Information on the New Net                 Schedule A-3 
Operating Loss Regime for Tax Years Ending on and After 
                                                                          Summary of Tax Credits
July 31, 2019.
                                                                          This schedule must be completed if any tax credits are being 
Line 41 – Deduction for current converted net operation                   claimed for the current tax period. Any tax credit(s) claimed on 
losses                                                                    this schedule must be documented with a valid New Jersey Cor-
Enter the amount of current converted net operating losses from           poration Business Tax credit form and must be included with the 
Form 500S.                                                                tax return. See page 15 for a list of available credit forms and for 
                                                                          instructions on obtaining them. If the taxpayer is claiming a valid 
Line 42 – Allocated entire net income before allocated divi-              tax credit that is allowable in accordance with the New Jersey 
dend exclusion                                                            Corporation Business Tax Act for which a place has not been 
Subtract line 41 from line 40 and enter the result. If the amount         provided somewhere else on the schedule, report the amount on 
is zero or less, enter zero here and on line 45.                          the “Other” line in the appropriate section of Schedule A-3.
Line 43 – Allocated Dividend Exclusion 
                                                                                  Taxpayers must include the appropriate credit 
Enter the amount from Schedule R, line 13. 
                                                                                  form in the year the credit was earned even if they 
Note:  The amount of the dividend exclusion allowed to be taken                   are not claiming the credit on their tax return.
      as a deduction is limited to the amount of income reported 
      on Schedule A, line 42 for the tax year.
                                                                          Part I – Tax Credits Used Against Liability 
Pursuant to N.J.S.A. 54:10A-4(k)(5), N.J.S.A. 54:10A-4(u),                The total on line 30 must equal the amount reported on page 1, 
N.J.S.A. 54:10A-4(v), and N.J.S.A. 54:10A-4(w), the dividend              line 3. Amounts to be entered are calculated on the credit forms. 
exclusion is now an allocated exclusion.                                  See the specific New Jersey Corporation Business Tax credit 
                                                                          form for information about each credit.
Line 45 – Allocated Entire Net Income
Subtract line 43 from line 42 and enter the result.                       Note:  Most tax credits cannot reduce the tax liability below the 
                                                                                  minimum tax. However, there are rare instances where it 
Part II                                                                           can. Follow the instructions on the credit form regarding 
Line 1 – Entire net income that is subject to federal corpo-                      how and where to record the information to ensure the 
rate income taxation                                                              credit is properly offsetting the tax liability. 
Line 1 must reflect the income used as a basis in determining 
                                                                          Part II – Refundable Tax Credits
the federal tax payable by the corporation as reported on fed-
                                                                          If the credit form calculates an amount to be refunded, enter the 
eral Form 1120-S, such as certain built-in gains, net passive 
                                                                          refundable portion on the appropriate line. The total on line 6 
income, etc. Built-in gains must be reported on line 23d as a 
                                                                          must equal the amount reported on page 1, line 8c.
gross amount exclusive of any net effects of taxes paid by the 
corporation.
Line 2 – Allocation Factor                                                Schedule A-4 
Enter the allocation factor from Schedule J.                              Summary Schedule 
                                                                          Every corporation must complete this schedule. Report the 
Line 3 – Allocated Entire Net Income before net operating 
                                                                          information on each line of Schedule A-4 from the return 
loss deductions
Multiply line 1 by line  2.                                               schedules indicated. All lines must be completed as applicable. 
                                                                          Non-allocating taxpayers must enter 1.000000 on line 5.
Line 4 – Deduction for Available Converted Net Operation 
Losses
For privilege periods ending on and after July 31, 2019, a tax-
payer may use their New Jersey net operating loss deductions 
against their allocated entire net income that is subject to federal 

                                                                     - 7 -

                                                                                 Part I and Part II of Schedule G. See the instructions for 
Schedule A-GR                                                                    Schedule G-2 for more information. 
Computation of New Jersey Gross Receipts and 
Minimum Tax                                                                Definitions
Subtract line 3 from line 2 on page 1. If the resulting tax liability      Related member means a person that, with respect to the tax-
                                                                           payer during all or any portion of the tax year is (1) a related 
is less than $1,500, complete this schedule. Enter the greater 
                                                                           entity, (2) a component member as defined in subsection (b) of 
of the computed tax liability or the amount on Schedule A-GR, 
                                                                           I.R.C. § 1563, (3) a person to or from whom there is attribution 
line 7 on page 1, line 4. 
                                                                           of stock ownership in accordance with subsection (e) of I.R.C. 
The minimum tax is assessed based on the New Jersey Gross                  § 1563, or (4) a person that, notwithstanding its form of organi-
Receipts as follows:                                                       zation, bears the same relationship to the taxpayer as a person 
                                                                           described in (1) through (3) of this definition.
New Jersey Gross Receipts                       Minimum Tax
Less than $100,000                                     $375                Related entity means (1) a stockholder who is an individual or a 
$100,000 or more but less than $250,000                $562                member of the stockholder’s family enumerated in I.R.C. § 318, 
$250,000 or more but less than $500,000                $750                if the stockholder and the members of the stockholder’s family 
$500,000 or more but less than $1,000,000       $1,125                     own, directly, indirectly, beneficially or constructively, in the ag-
$1,000,000 or more                              $1,500                     gregate, at least 50% of the value of the taxpayer’s outstanding 
If a taxpayer is filing a separate return and is a member of an            stock; (2) a stockholder, or a stockholder’s partnership, limited 
affiliated or controlled group (as per I.R.C. § 1504 or § 1563)            liability company, estate, trust or corporation, if the stockholder 
that has a total payroll of $5,000,000 or more for the tax year,           and the stockholder’s partnerships, limited liability companies, 
the minimum tax is $2,000 regardless of the amount of the tax-             estates, trusts and corporations own directly, indirectly, bene-
payer’s New Jersey gross receipts. In such instances, Schedule             ficially or constructively, in the aggregate, at least 50% of the 
A-GR does not need to be completed. Tax years of less than                 value of the taxpayer’s outstanding stock; or (3) a corporation, or 
12 months are subject to the higher minimum tax if the prorated            a party related to the corporation in a manner that would require 
total payroll exceeds $416,667 per month. Total payroll refers to          an attribution of stock from the corporation to the party or from 
the total payroll of the affiliated group rather than total New Jer-       the party to the corporation under the attribution rules I.R.C. 
sey payroll of a single corporation. Taxpayers that are members            § 318, if the taxpayer owns, directly, indirectly, beneficially or 
of an affiliated or controlled group must submit a schedule of             constructively, at least 50% of the value of the corporation’s out-
payroll per member and a copy of the taxpayer’s federal affilia-           standing stock. The attribution rules of I.R.C. § 318, shall apply 
tions schedule, Form 851, with the return.                                 for purposes of determining whether the ownership requirements 
                                                                           of this definition have been met.
The minimum tax cannot be prorated. In general, zero (0) 
returns are not permitted.                                                 Intangible expenses and costs includes (1) expenses, losses, 
                                                                           and costs, for, related to, or in connection directly or indirectly 
                                                                           with the direct or indirect acquisition, use, maintenance or man-
                                                                           agement, ownership, sale, exchange, or any other disposition 
Schedule B                                                                 of intangible property to the extent such amounts are allowed 
Schedule B has been discontinued. The Division will use data               as deductions or costs in determining taxable income before 
from federal Form 1120-S, Schedule L.                                      operating loss deduction and special deductions for the tax year 
                                                                           under the federal Internal Revenue Code of 1986, 26 U.S.C. s.1 
                                                                           et seq., (2) losses related to, or incurred in connection directly or 
Schedule C                                                                 indirectly with factoring transactions or discounting transactions, 
Schedule C has been discontinued. The Division will use data               (3) royalty, patent, technical and copyright fees, (4) licensing 
from federal Form 1120-S, Schedules M-1, M-2, and M-3.                     fees, and (5) other similar expenses and costs.
                                                                           Intangible Property means patents, patent applications, trade 
Schedule F                                                                 names, trademarks, service marks, copyrights, mask works, 
                                                                           trade secrets, and similar types of intangible assets.
Corporate Officers – General Information and 
Compensation                                                               Intangible Interest Expenses and Costs means amounts 
All applicable information should be provided for each corporate           directly or indirectly allowed as deductions under I.R.C. § 163 
officer regardless of whether compensation was received. The               for purposes of determining taxable income under the code to 
data reported on Schedule F must match what is reported on                 the extent such expenses and costs are directly or indirectly for, 
federal Form 1125-E. Include Form 1125-E with your return.                 related to, or in connection with the direct or indirect acquisition, 
                                                                           maintenance, management, ownership, sale, exchange, or dis-
                                                                           position of intangible property.
Schedule G 
Interest                                                                   Part I – Interest 
                                                                           Interest paid, accrued, or incurred to related members that was 
If the taxpayer is claiming an exception to the disallowance of 
the expense reported in Part I or Part II of Schedule G, the tax-          deducted in computing taxable net income on Schedule A, Part II, 
payer must complete and include Schedule G-2. The schedule is              line 5 must be reported on Schedule G, Part I. If the taxpayer is 
available on the Division’s website.                                       claiming an exception to the disallowance, complete and include 
                                                                           Schedule G-2, and include the appropriate amount on Sched-
Note:  For tax years beginning on or after January 1, 2018,                ule G, Part I, line 1b. 
       the treaty exceptions have been limited pursuant to P.L. 
       2018, c. 48. There are additional requirements to meet              Do not include interest expenses and costs that were deducted 
       the treaty exceptions that are reported for the purposes of         directly or indirectly for, related to, or in connection with the 

                                                                      - 8 -

direct or indirect acquisition, maintenance, management, own-              For tax years ending on and after July 31, 2019, services are 
ership, sale, exchange, or disposition of intangible property in           sourced based on market sourcing, not cost of performance. 
Part I of Schedule G. These expenses and costs are, however, 
required to be included in Part II.                                        Note:  The amount of dividends (deemed and/or paid dividends) 
                                                                                 excluded from entire net income pursuant to N.J.S.A. 
Part II – Interest expenses and costs and                                        54:10A-4(k)(5), are not included in the numerator or de-
                                                                                 nominator of the receipts fraction. However, the dividend 
intangible expenses and costs                                                    (deemed and/or paid dividends) values that are not ex-
Interest expenses and costs and intangible expenses and costs                    cluded are included in the numerator or denominator. 
directly or indirectly paid, accrued, or incurred to, or in connec-
tion directly or indirectly with one or more direct or indirect trans-
actions with one or more related members that were deducted in                        Schedule J must be completed after calculating the 
computing taxable net income on Schedule A, Part II, line 5 must                      Dividend Exclusion line on the respective parts  
be reported on Schedule G, Part II. If the taxpayer is claiming an                    of Schedule R but before calculating the line for 
exception to the disallowance, complete and include Schedule                          Allocated Dividend Exclusion. 
G-2, and include the appropriate amount on Schedule G, Part II, 
line 1b. Schedule G-2 is available on the Division’s website.              Line 1h – Single Sales Fraction
                                                                           Divide line 1f (New Jersey based receipts) by line 1g (Total Re-
                                                                           ceipts everywhere) and enter the result. When computing the 
                                                                           allocation factor in Schedule J, division must be carried to six (6) 
Schedule H                                                                 decimal places, e.g., 0.123456.
Taxes
Itemize all taxes that were in any way deducted in arriving at tax-
able net income, whether reflected in Schedule A, Part I at line 2         Schedule K
(Cost of goods sold and/or operations), line 12 (Taxes), line 19           Shareholders’ Shares of Income, Deductions, Etc.
(Other deductions) or anywhere else on Schedule A.
                                                                           If the S corporation was completely liquidated during the tax 
                                                                           year, see the instructions for Schedule K Liquidated.

Schedule J                                                                 Part I 
Computation of Allocation Factor                                           Line 1 – Enter the total number of shareholders as of the closing 
If taxpayer does not have receipts outside New Jersey, the al-             date of this return.
location factor will be 100% (1.000000) and there is no need to 
complete this schedule. All other taxpayers must complete this             Line 2 – Enter the total number of nonresident shareholders in-
schedule to calculate the allocation factor.                               cluded on line 1 above.
Only activities related to operational activity are to be used in          Lines 3a and b – Enter the total number of nonconsenting 
computing the general allocation factors. If the taxpayer has              shareholders included on line 1 and the percentage of stock 
nonoperational activity, see Schedule O. If the taxpayer has non-          owned as of the closing date of this return. A nonconsenting 
unitary partnership income, see Schedule P-1.                              shareholder is not an initial shareholder of a New Jersey S cor-
                                                                           poration, but one that has acquired stock after the original New 
Lines 1a–1e – Receipts Fraction                                            Jersey S election and has failed to consent to the New Jersey 
Receipts from sales of tangible personal property are allocated            tax jurisdiction.
to New Jersey if the goods are shipped to points within New Jer-
sey. Receipts from the sale of goods are allocable to New Jersey           Part II – New Jersey S Corporation Income (Loss) 
if shipped to a New Jersey or a non-New Jersey customer where              Lines 2a–2l – Enter the amounts of income or loss as reported 
possession is transferred in New Jersey. Receipts from the sale            on the corresponding lines of your federal Form 1120-S, Sched-
of goods shipped to a taxpayer from outside New Jersey to a                ule K.
New Jersey customer by a common carrier are allocable to New 
Jersey. Receipts from the sale of goods shipped from outside               On line 2i, report any gains or losses from the disposition of 
New Jersey to a New Jersey location where the goods are                    property in which a section 179 expense was claimed and 
picked up by a common carrier and transported to a customer                passed through to the S corporation shareholders.
outside New Jersey are not allocable to New Jersey. Receipts 
from the following are allocable to New Jersey: services per-              Lines 4a–4e Additions
formed if the benefit of the service is received in New Jersey;            Line 4a – Enter any State and municipal interest income that 
rentals from property situated in New Jersey; royalties from the           was not included in line 3. Do not include interest received or 
use in New Jersey of patents, copyrights, and trademarks; all              credited from obligations of the State of New Jersey or any of its 
other business receipts earned in New Jersey.                              political subdivisions.
Receipts from Sales of Capital Assets. Receipts from sales                 Line 4b – Enter the total taxes paid or accrued to the United 
of capital assets (property not held by the taxpayer for sale to           States, a state, a political subdivision thereof, or the District 
customers in the regular course of business), either within or             of Columbia on or measured by profits or income, or business 
outside New Jersey, should be included in the numerator and                presence or business activity, including income taxes paid or 
the denominator based on the net gain recognized and not on                accrued by the corporation on behalf of, or in satisfaction of 
gross selling prices. If the taxpayer’s business is the buying and         the liabilities of, the shareholders of the corporation, taken as a 
selling of real estate or the buying and selling of securities for         deduction on the CBT-100S, Schedule A and reflected in line 3, 
trading purposes, gross receipts from the sale of such assets              Part II of Schedule K.
should be included in the numerator and the denominator of the 
receipts fraction.

                                                                      - 9 -

Line 4c – Enter all interest on indebtedness incurred or contin-           Line 1b – Enter the net effect of the elimination of nonunitary 
ued, expenses paid and incurred to purchase, carry, manage or              partnership income and expenses from Schedule P-1, Part II, 
conserve, and expenses of collection of the income or gain from            line 4.
obligations the income or gain from which is deductible pursuant 
to N.J.S.A. 54A:6-14 and 6-14.1, and reflected in line 3, Part II of       Line 5 – If you have completed Schedule O, Nonoperational 
Schedule K.                                                                Activity, enter the amount reported on Part III, line 31, column C, 
                                                                           Total Allocated New Jersey Portion. If you have not completed 
Line 4d – Enter any losses reflected in line 3 that are not de-            Schedule O, enter a zero on this line.
ductible for New Jersey Gross Income Tax purposes pursuant to 
N.J.S.A. 54A:6-14 and 6-14.1, i.e., losses from exempt federal             Part IV-A – Analysis of New Jersey Accumulated 
obligations and/or obligations of the State of New Jersey or its           Adjustments Account (AAA) 
political subdivisions.                                                    This account reflects New Jersey S corporation earnings after a 
Lines 6a–g Subtractions                                                    New Jersey S corporation election has been filed and approved.
Line 6a – Enter any interest income reflected in line 3 that is not        Note:  If applicable, the allocation percentage from Schedule K, 
subject to New Jersey Gross Income Tax pursuant to N.J.S.A.                       Part III, line 3 should be used for all allocated amounts 
54A:6-14 and 6-14.1, i.e., interest income on exempt federal                      indicated below.
obligations.
                                                                           Column A – New Jersey AAA, includes:
Line 6b – Enter any gains reflected in line 3 that are not subject         •  Resident – All items of income, loss, reduction, or distribution 
to New Jersey Gross Income Tax pursuant to N.J.S.A. 54A:6-14                 regardless of where it is generated (include both allocated 
and 6-14.1, i.e., gains or losses from exempt federal obligations            and non-allocated amounts). Allocated and non-allocated 
and/or obligations of the State of New Jersey or its political               amounts refer to the corporation’s New Jersey allocation 
subdivisions.                                                                factor.
Line 6c – I.R.C. Section 179 expenses from federal Schedule K.             • Nonresident – Items of income, loss, reduction, or distribu-
                                                                             tion generated from New Jersey sources (include allocated 
Line 6d – 50% of business meal expenses and 100% of enter-                   amounts only).
tainment expenses not deductible for federal purposes.
Line 6e – Charitable contributions from federal Schedule K.                Column B – Non-New Jersey AAA, includes:
                                                                           •  Resident – No items.
Line 6f – Include any expenses to generate federal tax-exempt              • Nonresident – Items of income, loss, reduction, or distri-
                                                                             
income that is taxable for New Jersey Gross Income Tax pur-                  bution generated from non-New Jersey sources (include 
poses. Submit a schedule. Also include any other items that are              non-allocated amounts only).
excludable or deductible from S corporation income under the 
New Jersey Gross Income Tax Act.                                           Line 1 – Enter the prior year ending balance of the New Jersey 
Note: For tax years beginning on or after January 1, 2018,                 Accumulated Adjustments Account (AAA). For the first year of 
      I.R.C. Section 199 has been repealed for federal pur-                the New Jersey S corporation election, the beginning balance of 
      poses and no deduction is allowed for New Jersey pur-                the New Jersey AAA account will be zero.
      poses. For New Jersey Corporation Business Tax and                   Line 2 – Enter the net pro rata share of allocated and non-al-
      Gross Income Tax purposes, the I.R.C. Section 199A                   located S corporation income or loss for resident shareholders 
      is disallowed for tax years beginning on and after                   and the net pro rata share of allocated S corporation income for 
      January 1, 2018.                                                     nonresident shareholders.
Line 7 – For tax years beginning on or after January 1, 2004, if           Line 3 – Enter the total of the allocated and non-allocated 
the federal special bonus depreciation allowance or I.R.C. Sec-            tax-exempt income or loss for resident shareholders and the al-
tion 179 expense were deducted for assets placed in service                located tax-exempt income or loss for nonresident shareholders.
on or after January 1, 2004, then a New Jersey depreciation 
adjustment is required. Use Gross Income Tax Depreciation                  Line 4 – Enter the total of the allocated and non-allocated 
Adjustment Worksheet, GIT-DEP, to calculate the depreciation               other reduction(s) for resident shareholders and the allocated 
adjustment for the assets’ initial years and for subsequent years          other reduction(s) for nonresident shareholders. Other reduc-
until property is fully depreciated or disposed of; for adjustments        tions include taxes based on income paid by the S corporation 
to federal Section 179 recapture income; and for adjustments to            (the taxes added back on Schedule K, Part II, line 4b), health 
the gain or loss from disposition of such assets. Enter the results        or life insurance paid by the S corporation, fines and penalties 
on this line. Worksheet GIT-DEP is available on the Division’s             paid by the S corporation, and club dues paid by the S corpo-
website.                                                                   ration. Also, other reductions should include any other adjust-
                                                                           ments for expenses that are nondeductible for federal income 
Part III – Allocation of S Corporation Income                              tax purposes in determining income but must be taken into 
(Loss)                                                                     consideration in calculating the ending balance of AAA in the 
Line 1a – If you have completed Schedule O, Nonoperational                 year the expenses are incurred or paid, and are not already in-
Activity, enter the amount reported on Part I, line 34, of Sched-          cluded in Schedule K, Part II. Provide a schedule detailing other 
ule O. If you have not completed Schedule O, enter zero on this            reductions.
line. If the nonoperational income has already been deducted 
                                                                           Line 5 – Enter the total of lines 1, 2, 3, and 4.
from line 1 via adjustments made in Part II, make no adjust-
ments on this line.                                                        Line 6 – Enter the total of the allocated and non-allocated 
                                                                           distribution(s) for the resident shareholder and the allocated 

                                                                     - 10 -

distribution(s) for the nonresident shareholder. Federal rules 
governing distributions must be followed.                                 Schedule K Liquidated
                                                                          Shareholders’ Shares of Income, Deductions, Etc.
Part IV-B – New Jersey Earnings and Profits                               Special Instructions for S corporations completely liquidated 
Account                                                                   during the tax year – Under N.J.A.C. 18:35-1.5(k)2, a complete 
This account reflects New Jersey C corporation earnings prior to          liquidation of an S corporation is deemed to occur in the tax 
any New Jersey S corporation election.                                    year when all of the S corporation’s assets have been sold or 
                                                                          deemed to have been sold, exchanged, disposed, or distributed 
Line 1 – Enter the beginning balance of the New Jersey E & P              and all of the S corporation’s stock has been sold, exchanged, or 
account. For the first year of the New Jersey S corporation elec-         disposed. If both of these criteria are met and the S corporation 
tion, the beginning balance of the earnings and profits account           was completely liquidated during the tax year, Schedule K Liqui-
will be the retained earnings of the corporation prior to the New         dated must be prepared instead of Schedule K.
Jersey S election. If the retained earnings of the corporation 
prior to the New Jersey S election is a negative amount, enter            Column A – S Corporation Income, Gains, Losses Prior to Dis-
zero.                                                                     position of Assets: List in column A the income, gains, losses, 
                                                                          and New Jersey adjustments from and applicable to the S cor-
Line 2 – Enter any additions or adjustments that must be made             poration’s operations, activities, and transactions prior to the 
for federal income tax purposes.                                          complete sale, exchange, or other disposition of all of the S cor-
                                                                          poration’s assets. The total will be reported on the shareholders’ 
Line 3 – Enter any dividends paid during the tax year from the            Schedule NJ-K-1 as “Pro rata share of S corporation income/
earnings and profits account. See instructions for Part IV-A,             loss.”
line 6.
                                                                          Column B – Income, Gains, Losses from Disposition of Corpo-
Parts V, VI, and VII                                                      rate Assets: List in column B the income, gains, losses, and New 
Complete Parts V, VI, and VII including shareholders’ full names          Jersey adjustments derived from and applicable to the S corpo-
and Social Security numbers. List all shareholders in the S               ration’s complete sale, deemed sale, exchange, distribution, or 
corporation receiving either a federal or New Jersey K-1. If addi-        other disposition of all of its assets. The total will be reported on 
tional space is required, include separate schedules in the exact         the shareholders’ Schedule NJ-K-1 as “Total gain/loss from the 
format for the additional shareholders.                                   disposition of assets.”

Part V – For resident shareholders, indicate their pro rata share         Part I 
of S corporation income/loss from all sources in column C, and            Line 1 – Enter the total number of shareholders as of the closing 
the actual total amount of distributions, whether in cash and/or          date of this return.
property, in column D.
                                                                          Line 2 – Enter the total number of nonresident shareholders in-
Complete column E only if all shareholders are individuals, es-           cluded on line 1 above.
tates, or trusts. If you indicate on Form 329, Part I, line 13 that 
the Share of Pass-Through Business Alternative Income Tax will            Lines 3a and 3b – Enter the total number of nonconsenting 
be allocated to the shareholders, enter in column E each share-           shareholders included on line 1 and the percentage of stock 
holder’s share of the amount from Form 329, Part I, line 13.              owned as of the closing date of this return. A nonconsenting 
                                                                          shareholder is not an initial shareholder of a New Jersey S cor-
Part VI – For consenting nonresident shareholders, indicate               poration, but one that has acquired stock after the original New 
the income/loss allocated to New Jersey in column C, and the              Jersey S election and has failed to consent to the New Jersey 
income/loss not allocated to New Jersey in column D and the               tax jurisdiction.
actual total amount of distributions, whether in cash and/or prop-
erty, in column E.                                                        Line 4 – Enter the date the assets were fully disposed.
Complete column F only if all shareholders are individuals, es-           Line 5 – Enter the date the shareholders’ stock was fully 
tates, or trusts. If you indicate on Form 329, Part I, line 13 that       disposed.
the Share of Pass-Through Business Alternative Income Tax will 
be allocated to the shareholders, enter in column F each share-           Part II – New Jersey S Corporation Income (Loss) 
holder’s share of the amount from Form 329, Part I, line 13.              Lines 2a–2e, 2h, 2k, and 2l – Enter the amounts of income or 
                                                                          loss as reported on the corresponding lines of your federal Form 
Part VII – For nonconsenting shareholders, indicate the income/           1120-S, Schedule K. 
loss allocated to New Jersey in column C and the income/loss 
not allocated to New Jersey in column D. Enter on page 1, lines           Lines 2f, 2g, 2i, and 2j – In column A, enter the amounts ap-
10 and 11 of the CBT-100S, the totals reported from Part VII,             plicable to operations and transactions prior to the complete 
column C, the income allocated to New Jersey, and column F,               disposition of corporate assets. In column B, enter the amounts 
Gross Income Tax Paid, respectively. If the income allocated              applicable to the complete disposition of corporate assets.
to New Jersey is a loss, enter a zero (0) on lines 10 and 11 on 
page 1 of the CBT-100S.                                                   On line 2i report any gains or losses from the disposition of 
                                                                          property in which a section 179 expense was claimed and 
Complete column G only if all shareholders are individuals, es-           passed through to the S corporation shareholders.
tates, or trusts. If you indicate on Form 329, Part I, line 13 that 
the Share of Pass-Through Business Alternative Income Tax will            Lines 4a–4e Additions
be allocated to the shareholders, enter in column G each share-           Line 4a – Enter any State and municipal interest income that 
holder’s share of the amount from Form 329, Part I, line 13.              was not included in line 3. Do not include interest received or 
                                                                          credited from obligations of the State of New Jersey or any of its 
                                                                          political subdivisions.

                                                                    - 11 -

Line 4b – Enter the total taxes paid or accrued to the United              to federal Section 179 recapture income; and for adjustments 
States, a state, a political subdivision thereof, or the District          to the gain or loss from disposition of such assets. Enter the 
of Columbia on or measured by profits or income, or business               results on this line. This worksheet is available on the Division’s 
presence or business activity, including income taxes paid or              website.
accrued by the corporation on behalf of, or in satisfaction of 
the liabilities of, the shareholders of the corporation, taken as a        Part III – Allocation of S Corporation Income 
deduction on the CBT-100S, Schedule A and reflected in line 3,             (Loss) 
Part II of Schedule K Liquidated.                                          Line 1a – If you have completed Schedule O, Nonoperational 
Line 4c – Enter all interest on indebtedness incurred or contin-           Activity, enter the amount reported on Part I, line 34, of Sched-
ued, expenses paid and incurred to purchase, carry, manage or              ule O. If you have not completed Schedule O, enter zero on this 
conserve, and expenses of collection of the income or gain from            line. If the nonoperational income has already been deducted 
obligations the income or gain from which is deductible pursuant           from line 1 via adjustments made in Part II, make no adjust-
to N.J.S.A. 54A:6-14 and 6-14.1, and reflected in line 3, Part II of       ments on this line.
Schedule K Liquidated.                                                     Line 1b – Enter the net effect of the elimination of nonunitary 
Line 4d – Enter any losses reflected in line 3 that are not de-            partnership income and expenses from Schedule P-1, Part II, 
ductible for New Jersey Gross Income Tax purposes pursuant to              line 4.
N.J.S.A. 54A:6-14 and 6-14.1, i.e., losses from exempt federal             Line 5 – If you have completed Schedule O, Nonoperational 
obligations and/or obligations of the State of New Jersey or its           Activity, enter the amount reported on Part III, line 31, column C, 
political subdivisions.                                                    Total Allocated New Jersey Portion. If you have not completed 
Line 4e – In column A, enter the amounts applicable to opera-              Schedule O, enter zero on this line.
tions and transactions prior to the complete disposition of cor-
porate assets. In column B, enter the amounts applicable to the            Part IV-A – Analysis of New Jersey Accumulated 
complete disposition of corporate assets.                                  Adjustments Account (AAA) 
                                                                           This account reflects New Jersey S corporation earnings after a 
Lines 6a–6f Subtractions                                                   New Jersey S corporation election has been filed and approved.
Line 6a – Enter any interest income reflected in line 3 that is not 
subject to New Jersey Gross Income Tax pursuant to N.J.S.A.                Note:  If applicable, the allocation percentage from Schedule K 
54A:6-14 and 6-14.1, i.e., interest income on exempt federal                      Liquidated, Part III, line 3 should be used for all allocated 
obligations.                                                                      amounts indicated below.
Line 6b – Enter any gains reflected in line 3 that are not subject         Column A – New Jersey AAA, includes:
to New Jersey Gross Income Tax pursuant to N.J.S.A. 54A:6-14               •  Resident – All items of income, loss, reduction, or distribution 
and 6-14.1, i.e., gains or losses from exempt federal obligations            regardless of where it is generated (include both allocated 
and/or obligations of the State of New Jersey or its political               and non-allocated amounts). Allocated and non-allocated 
subdivisions.                                                                amounts refer to the corporation’s New Jersey allocation 
                                                                             factor.
Line 6c – I.R.C. Section 179 expenses from federal Schedule K.
                                                                           • Nonresident – Items of income, loss, reduction, or distribu-
Line 6d – 50% of business meal expenses and 100% of enter-                   tion generated from New Jersey sources (include allocated 
tainment expenses not deductible for federal purposes.                       amounts only).

Line 6e – Charitable contributions from federal Schedule K.                Column B – Non-New Jersey AAA, includes:
Line 6f – In column A, enter the amounts applicable to oper-               •  Resident – No items.
ations and transactions prior to the complete disposition of               • Nonresident – Items of income, loss, reduction, or distri-
corporate assets. In column B, enter the amounts applicable to               bution generated from non-New Jersey sources (include 
the complete disposition of corporate assets. Include any other              non-allocated amounts only).
items that are excludable or deductible from S corporation in-
come under the New Jersey Gross Income Tax Act.                            Line 1 – Enter the prior year ending balance of the New Jersey 
                                                                           Accumulated Adjustments Account (AAA). For the first year of 
Note: For tax years beginning on or after January 1, 2018,                 the New Jersey S corporation election, the beginning balance of 
      I.R.C. Section 199 has been repealed for federal pur-                the New Jersey AAA account will be zero.
      poses and no deduction is allowed for New Jersey pur-
      poses. For New Jersey Corporation Business Tax and                   Line 2 – Enter the net pro rata share of allocated and 
      Gross Income Tax purposes, the I.R.C. Section 199A is                non-allocated S corporation income or loss for resident share-
      disallowed for tax years beginning on and after January 1,           holders and the net pro rata share of allocated S corporation 
      2018.                                                                income for nonresident shareholders.
Line 7 – For tax years beginning on or after January 1, 2004, if           Line 3 – Enter the total of the allocated and non-allocated 
the federal special bonus depreciation allowance or I.R.C. Sec-            tax-exempt income or loss for resident shareholders and the al-
tion 179 expense were deducted for assets placed in service                located tax-exempt income or loss for nonresident shareholders.
on or after January 1, 2004, then a New Jersey depreciation 
adjustment is required. Use Gross Income Tax Depreciation                  Line 4 – Enter the total of the allocated and non-allocated other 
Adjustment Worksheet, GIT-DEP, to calculate the depreciation               reduction(s) for resident shareholders and the allocated other 
adjustment for the assets’ initial years and for subsequent years          reduction(s) for nonresident shareholders. Other reductions 
until property is fully depreciated or disposed of; for adjustments        include taxes based on income paid by the S corporation (the 
                                                                           taxes added back on Schedule K Liquidated, Part II, line 4b), 

                                                                     - 12 -

health or life insurance paid by the S corporation, fines and             New Jersey in column F. Enter the actual total amount of distri-
penalties paid by the S corporation, and club dues paid by the            butions (prior to and including liquidating), whether in cash and/
S corporation. Also, other reductions should include any other            or property, in column G.
adjustments for expenses that are nondeductible for federal 
income tax purposes in determining income but must be taken               Complete column H only if all shareholders are individuals, es-
into consideration in calculating the ending balance of AAA in            tates, or trusts. If you indicate on Form 329, Part I, line 13 that 
the year the expenses are incurred or paid, and are not already           the Share of Pass-Through Business Alternative Income Tax will 
included in Schedule K Liquidated, Part II. Provide a schedule            be allocated to the shareholders, enter in column H each share-
detailing other reductions.                                               holder’s share of the amount from Form 329, Part I, line 13.
Line 5 – Enter the total of lines 1, 2, 3, and 4.                         Part VII – For nonconsenting shareholders, indicate the income/
                                                                          loss allocated to New Jersey in column C and the income/loss 
Line 6 – Enter the total of the allocated and non-allocated distri-       not allocated to New Jersey in column D. Enter the gain/loss on 
bution(s) for the resident shareholder and the allocated distribu-        disposition of assets allocated to New Jersey in column E and 
tion(s) for the nonresident shareholder. Federal rules governing          the gain/loss on disposition of assets not allocated to New Jer-
distributions must be followed.                                           sey in column F. Combine the totals of column C and column E 
                                                                          and enter on page 1, line 10 of the CBT-100S. Enter the total of 
Part IV-B – New Jersey Earnings and Profits                               column H, Gross Income Tax Paid, on line 11. If the income al-
Account                                                                   located to New Jersey is a loss, enter a zero (0) on lines 10 and 
This account reflects New Jersey C corporation earnings prior to          11 of the CBT-100S.
any New Jersey S corporation election.                                    Complete column I only if all shareholders are individuals, es-
Line 1 – Enter the beginning balance of the New Jersey E&P                tates, or trusts. If you indicate on Form 329, Part I, line 13 that 
account. For the first year of the New Jersey S corporation elec-         the Share of Pass-Through Business Alternative Income Tax will 
tion, the beginning balance of the earnings and profits account           be allocated to the shareholders, enter in column I each share-
will be the retained earnings of the corporation prior to the New         holder’s share of the amount from Form 329, Part I, line 13.
Jersey S election. If the retained earnings of the corporation 
prior to the New Jersey S election is a negative amount, enter 
zero.                                                                     Schedule PC 
                                                                          Per Capita Licensed Professional Fee
Line 2 – Enter any additions or adjustments that must be made             Professional corporations (PC) formed under N.J.S.A. 14A:17-1 
for federal income tax purposes.                                          et seq. or any similar laws of a possession or territory of the 
Line 3 – Enter any dividends paid during the tax year from the            U.S., a state, or political subdivision thereof, are liable for a fee 
earnings and profits account. See instructions for Part IV-A,             on licensed professionals. 
line 6.                                                                   Per N.J.S.A. 14A:17-3, examples of licensed professionals are: 
                                                                          certified public accountants, architects, optometrists, profes-
Parts V, VI, and VII                                                      sional engineers, land surveyors, land planners, chiropractors, 
Complete Parts V, VI, and VII including shareholders’ full names          physical therapists, registered professional nurses, dentists, os-
and Social Security numbers. List all shareholders in the S               teopaths, physicians and surgeons, doctors of medicine, doctors 
corporation receiving either a federal or New Jersey K-1. If addi-        of dentistry, podiatrists, veterinarians and, subject to the Rules of 
tional space is required, include separate schedules in the exact         the Supreme Court, attorneys at law.
format for the additional shareholders.
                                                                          Note:  Licenses acquired through vocational training and/or 
Determine each shareholder’s Pro Rata Share of Income/                         apprenticeships within those trades are not considered 
Loss based on Schedule K Liquidated, Part III, column A,                       licensed professionals. Examples include plumbers, elec-
lines 6 and 7. Determine each shareholder’s Gain/Loss on                       tricians, HVAC technicians, cosmetologists, fire and bur-
Disposition of Assets based on Schedule K Liquidated,                          glar alarm services, acupuncturists, hair stylists, elevator, 
Part III, column B, lines 6 and 7.                                             escalator, and moving walkway mechanics, locksmiths, 
Part V – For resident shareholders, indicate their pro rata share              and court reporters.
of S corporation income/loss from all sources in column C. Enter          The fee is assessed provided there are more than two profes-
the gain/loss on disposition of assets from all sources in column         sionals in the PC. The fee is assessed on professionals that are 
D. Enter the actual total amount of distributions (prior to and in-       owners, shareholders, and/or employees of the professional 
cluding liquidating), whether in cash and/or property, in column          corporation. The number of professionals should be calculated 
E.                                                                        using a quarterly average. The fee for each resident and non-
Complete column F only if all shareholders are individuals, es-           resident professional with physical nexus with New Jersey is 
tates, or trusts. If you indicate on Form 329, Part I, line 13 that       $150. The fee for each nonresident professional without physical 
the Share of Pass-Through Business Alternative Income Tax will            nexus with New Jersey is $150 multiplied by the allocation factor 
be allocated to the shareholders, enter in column F each share-           of the corporation. The fee is limited to $250,000 per year.
holder’s share of the amount from Form 329, Part I, line 13.              In the event of a period shorter than a year, the fee and limit may 
Part VI – For consenting nonresident shareholders, indicate               be prorated by months. A fraction of a month is deemed to be a 
the income/loss allocated to New Jersey in column C and the               month.
income/loss not allocated to New Jersey in column D. Enter the            Check the box on page 1 to indicate the corporation is a profes-
gain/loss on disposition of assets allocated to New Jersey in col-        sional corporation.
umn E and the gain/loss on disposition of assets not allocated to 

                                                                    - 13 -

Part II, line 4 – Installment Payment: A 50% prepayment towards           Part I is for reporting information from domestic subsidiaries. 
the subsequent year’s fee is required with the current year’s             Part II is for reporting information on foreign subsidiaries. 
return.
Part II, line 8 – Credit: Amount to be credited towards next year’s 
                                                                          Schedule R
fee. This fee is not eligible for refund.
                                                                          Dividend Exclusion
                                                                          For privilege periods ending on and after July 31, 2019, the divi-
Schedule P-1                                                              dend exclusion is a post-allocation exclusion. 
Partnership Investment Analysis                                           Dividends from all sources must be included in Schedule A. 
Part I – Partnership Information                                          However, taxpayers may exclude from entire net income 95% 
Itemize the investment in each partnership, limited liability com-        of dividends from qualified subsidiaries, if such dividends were 
pany, and any other entity that is treated for federal tax purposes       included in the taxpayer’s gross income on Schedule A. 
as a partnership. List the name, the federal identification number, 
and the date and state where organized for each partnership.              Taxpayers cannot include the following as part of the dividend 
Also, check the type of ownership (general or limited), the tax ac-       exclusion:
                                                                            
counting method used to reflect your share of partnership activity        • Money market fund or REIT income; 
on this return (flow through method or separate accounting) and 
whether or not the partnership has nexus in New Jersey. Itemize           • GILTI or FDII (this is not considered income from dividends or 
in column 7 the amount of tax payments made on behalf of the                deemed dividends for New Jersey Corporation Business Tax 
taxpayer by partnership entities. Carry the total amount of taxes           purposes); or 
paid on behalf of taxpayer to page 1, line 8b. Include a copy of 
Schedule NJK-1 from Form NJ-1065 if the partnership is filing in          • The portion of I.R.C. § 78 gross-up deducted on line 37a of 
New Jersey, or the federal Schedule K-1 if not. Any one member              Schedule A, Part I.
limited liability company must be included on this schedule.              A qualified subsidiary is defined as ownership by the taxpayer 
                                                                          of at least 80% of the total combined voting power of all classes 
Part II – Separate Accounting of Nonunitary Partnership                   of stock entitled to vote and at least 80% of the total number 
Income                                                                    of shares of all other classes of stock, except non-voting stock 
Taxpayers that use a Separate Tax Accounting Method on                    which is limited and preferred as to dividends. With respect to 
nonunitary partnership investments must complete Part II to               other dividends, the exclusion is limited to 50% of such divi-
compute the appropriate amount of tax. Pursuant to N.J.S.A.               dends included in the taxpayer’s gross income on Schedule A, 
54:10A-6, taxpayers must enter a single sales factor allocation           provided the taxpayer owns at least 50% of voting stock and 
in column 3. Do not use three factor allocation (property, payroll,       50% of the total number of shares of all other classes of stock. 
and sales) from the Partnership return (Form NJ-1065).
                                                                          If the taxpayer received tiered dividends from a tiered subsidi-
                                                                          ary that filed and paid tax in excess of the minimum tax to New 
Schedule P                                                                Jersey on those same dividends, do not include these dividends 
Subsidiary Investment Analysis                                            on Schedule R. The tiered dividend exclusion from certain sub-
Itemize the investment in each subsidiary company in which                sidiaries is calculated separately on Form 332. See Form 332 
the taxpayer holds 80% or more of the combined voting power               for more information. The form is available on the Division’s 
of all classes of stock entitled to vote and at least 80% of the          website.
total number of shares of all other classes of stock. For each 
subsidiary, report the name, the percentage of interest held in                     New Jersey follows the federal ownership attribu-
each company, the individual book value included in the bal-                        tion rule changes under I.R.C. § 958(b) and I.R.C. § 
ance sheet for each subsidiary investment, and the amount of                        318 that broadened the federal attribution rules that 
dividends paid and/or deemed received that is included in gross                     were retroactive to January 1, 2017, in addition to 
income on Schedule A. Do not include advances or other receiv-             the already broad Corporation Business Tax attribution rules. 
ables due to subsidiaries in the book value reported at column 3. 
                                                                          See N.J.S.A. 54:10A-4(k)(5), N.J.S.A. 54:10A-4(u), N.J.S.A. 
Include the gross I.R.C. § 965(a) amount (not the net amount). 
                                                                          54:10A-4(v), and N.J.S.A. 54:10A-4(w) for more information.
Federal previously taxed dividends must be included. However, 
dividends that have been previously taxed by New Jersey are               Schedule PT – Previously Taxed Dividends: If you had sub-
not included on Schedule P, but must be reported on Sched-                sidiary dividend income that was reported in a previous tax year 
ule PT. In addition, do not include the following:                        for New Jersey Corporation Business Tax purposes and for 
                                                                          which you paid greater than the New Jersey minimum tax in that 
• Money market fund or REIT income; 
                                                                          tax year and those same dividends are included in your entire 
• GILTI or FDII (this is not considered income from dividends or          net income this tax year, complete Schedule PT in conjunction 
  deemed dividends for New Jersey Corporation Business Tax                with Schedule R. See Schedule PT for more information. The 
  purposes); or                                                           schedule is available on the Division’s website. 
• The portion of I.R.C. § 78 gross-up deducted on line 37a of 
  Schedule A, Part I.
                                                                          Schedule S
New Jersey follows the federal ownership attribution rule                 All taxpayers must complete this schedule and must include a 
changes under I.R.C. §958(b) and I.R.C. §318 that broadened               copy of a completed federal Depreciation Schedule, Form 4562. 
the federal attribution rules that were retroactive to January 1,         Schedule S provides for adjustments to depreciation and certain 
2017, in addition to the already broad Corporation Business Tax           safe harbor leasing transactions. Gas, electric and gas, and 
attribution rules.

                                                                    - 14 -

electric utilities must also complete Schedule S, Part II, for prop-       provide a rider detailing the assets that used 50% and the assets 
erty placed in service prior to January 1, 1998.                           that used 30%.
Part I – Depreciation and Safe Harbor Leasing                              Column D – Enter the convention that was used for federal pur-
                                                                           poses. The applicable conventions are Half-Year Convention, 
         New Jersey had decoupled from I.R.C. §168(k)                      Mid-Quarter Convention, or the Mid-Month Convention.
         bonus depreciation and I.R.C. § 179 expensing pro-
         visions. See N.J.S.A. 54:10A-4(k)(12) and N.J.S.A.                Column E – Enter the method that was selected for federal 
         54:10A-4(k)(13). Adjustments must be made                         purposes. The applicable methods are 200% declining balance, 
accordingly.                                                               150% declining balance, or straight-line.
Line 1 through Line 6 – These lines detail the depreciation                Column F – Enter the amount of federal depreciation claimed 
deduction reflected in the Computation of Entire Net Income                on federal Form 4562.
(Schedule A, Part I) into several categories. In most circum-
stances, the information can be found on federal Form 4562.                Column G – To determine the New Jersey depreciation, multiply 
                                                                           column B by the applicable rate from the appropriate table (See 
Line 7 – Enter the amount reported on the federal Form 4562.               IRS Pub. 946 for complete tables). Enter the total on Sched-
                                                                           ule S, Part I, line 9.
Line 8 – Enter the amount of current depreciation on property 
placed in service in prior years carried over into the current             Worksheet II
period.                                                                    Column D – Enter the federal depreciation claimed up to the 
Line 9 – Enter the amount from Depreciation Worksheet I,                   date the property was sold.
line 10, column F.                                                         Column E – Enter the New Jersey depreciation claimed up to 
Line 11 – IRC § 179 depreciation in excess of New Jersey al-               the date the property was sold.
lowable deduction. If line 1 is more than $25,000, enter $25,000.          Column F – Enter the difference between column D and col-
Otherwise, leave blank.                                                    umn E. If the amount is positive, there is an excess of deprecia-
Line 12 – Enter the amount from Worksheet II, line 16, col-                tion that must be added to the federal amount claimed on Part I, 
umn F. If the amount is positive, add it to the total reported on          line 7. If the amount is negative, there is a deficiency that must 
line 15. If it is negative, subtract it from the total.                    be deducted from Part I, line 7.

Line 13 – Enter any adjustment to depreciation that is an addi-
tion. This can include, but is not limited to, partnership activity.       Schedule NJ-K-1 
Line 14 – Enter any adjustment to depreciation that is a deduc-            Shareholder’s Share of Income/Loss
tion. This can include, but is not limited to, partnership activity.       A copy of each shareholder’s Schedule NJ-K-1 must be included 
                                                                           with the CBT-100S. A copy of each NJ-K-1 must be kept as 
Part II – New Jersey Depreciation for Gas,                                 part of the corporation’s records, and a separate copy must be 
                                                                           supplied to each individual shareholder on or before the date 
Electric, and Gas and Electric Public Utilities                            on which the CBT-100S is to be filed. The instructions for this 
Gas, electric, and gas and electric utilities must complete this           schedule can be found on the reverse side of the form.
schedule to compute their New Jersey depreciation allowable for 
the single asset account, which is comprised of all depreciable 
property placed in service prior to January 1, 1998. The basis of 
                                                                           Form NJ-1040-SC
this asset account will be the total federal depreciable basis as 
of December 31, 1997, plus the excess of the book depreciable              Payment on Behalf of Nonconsenting 
basis over the federal tax basis as of December 31, 1997. This             Shareholders
basis will be reduced yearly by the federal basis of these assets          A copy of each NJ-1040-SC filed by the corporation on behalf 
sold, retired, or disposed of from January 1, 1998, to date.               of any nonconsenting shareholder must be included with the 
                                                                           CBT-100S. A copy must be retained by the corporation as part of 
Note: Gas, electric and gas, and electric utilities may have ad-           its records, and a copy must also be supplied to the shareholder 
      justments from both Part I and Part II. If the taxpayer has          on whose behalf the NJ-1040-SC was filed on or before the 
      amounts reported on Schedule S, Part II, lines 1 through             due date of the CBT-100S. The instructions for this form can be 
      5, enter the amount from Schedule S, Part I, line 23                 found on the reverse side of the form.
      on Schedule S, Part II, line 6b, not Schedule A, Part I, 
      line 36a or 36b.
                                                                           Form 500S
Worksheet I
Column A – Sort the property you acquired and placed in                    Computation of the Available Converted Net 
service during the tax year 2022 according to its classification           Operating Losses
(3-year property, 5-year property, etc.) as shown in column A.             For New Jersey Corporation Business Tax purposes, net oper-
                                                                           ating losses and net operating loss carryovers have a 20-year 
Column B – Use the federal basis adding back the special de-               carryover period and can only be carried forward. 
preciation reduction.
                                                                           For tax years beginning on and after January 1, 2020, the fed-
Column C – Enter the bonus depreciation claimed (50% or                    eral rules and regulations governing consolidated return net 
30%). If both categories of bonus depreciation are claimed,                operating losses and net operating loss carryovers apply to the 
                                                                           New Jersey net operating loss carryover provisions to the extent 

                                                                     - 15 -

they are consistent with the provisions of the New Jersey Corpo-            stand alone forms and schedules that taxpayers can obtain on 
ration Business Tax Act. If the New Jersey and federal provisions           the Division’s website. This includes: 
differ, the New Jersey Corporation Business Tax Act provisions 
govern. New Jersey generally follows the federal rules governing            • Schedule G-2: Claim for Exceptions to Disallowed Interest 
mergers, acquisitions, reorganizations, spin-offs, split-offs, disso-         and Intangible Expenses and Costs 
lution, bankruptcy, or any form of cessation of a business. New             • Schedule N: Nexus – Immune Activity Declaration and the 
Jersey also follows any other provision of the federal rules that             Nexus Questionnaire 
limits or reduces federal net operating losses and federal net op-
erating loss carryovers.                                                    • Schedule O: Nonoperational Activity
Part I – Net Operating Loss Carryovers Generated as a C                     • Schedule PT: Dividend Exclusion for Certain Previously 
Corporation prior to its New Jersey S election                                Taxed Dividends 
Line 1 – Enter the total Prior Net Operating Loss Conversion                • Form 300: Urban Enterprise Zone Employees Tax Credit
Carryover (PNOL). An S corporation may carry forward losses 
generated as a C corporation (for New Jersey Corporation                    • Form 301: Urban Enterprise Zone Investment Tax Credit
Business Tax purposes) prior to its New Jersey S election. The              • Form 302: Redevelopment Authority Project Tax Credit 
PNOL reported on line 1 would have been calculated while the 
taxpayer was a C corporation.                                               • Form 304: New Jobs Investment Tax Credit
Line 2 – Enter the total Post Allocation Net Operating Loss Car-            • Form 305: Manufacturing Equipment and Employment Invest-
ryover (NOL). An S corporation may carry forward losses gener-                ment Tax Credit
ated as a C corporation (for New Jersey Corporation Business                • Form 306: Research and Development Tax Credit
Tax purposes) prior to its New Jersey S election. The NOL re-
ported on line 2 would have been calculated while the taxpayer              • Form 311: Neighborhood Revitalization State Tax Credit
was a C corporation (for New Jersey Corporation Business Tax                • Form 312: Effluent Equipment Tax Credit
purposes) on a separate return or as part of a combined group 
on a combined return.                                                       • Form 313: Economic Recovery Tax Credit
Line 3 – Enter the total NOL that is available. Add line 1 and              • Form 315: AMA Tax Credit
line 2. This is the amount that will be entered on Schedule A,              • Form 316: Business Retention and Relocation Tax Credit
Part I, line 41 and Schedule A, Part II, line 4.
                                                                            • Form 317: Sheltered Workshop Tax Credit
Part II – Available Net Operating Loss Deductions 
Line 1 – Enter the amount reported on Schedule A, Part I,                   • Form 318: Film Production Tax Credit
line 41.                                                                    • Form 319: Urban Transit Hub Tax Credit
Note:  The loss reported each year must not include any amount              • Form 320: Grow New Jersey Tax Credit
      excluded from federal taxable income under subpara-
      graph (A), (B), or (C) of paragraph (1) of subsection (a) of          • Form 321: Angel Investor Tax Credit
      Internal Revenue Code (26 U.S.C. s.108).                              • Form 322: Wind Energy Facility Tax Credit
Line 2 – Enter the amount reported on Schedule A, Part II,                  • Form 323: Residential Economic Redevelopment and Growth 
line 4.                                                                       Tax Credit
Line 3 – Add line 1 and line 2. This is the total amount of NOL             • Form 324: Business Employment Incentive Program Tax 
used in the current year. The amount can only be generated                    Credit
while the taxpayer was a C corporation (for New Jersey Corpo-               • Form 325: Public Infrastructure Tax Credit
ration Business Tax purposes) or part of a combined group filing 
a combined return for New Jersey purposes. It cannot exceed                 • Form 327: Film and Digital Media Tax Credit
the total of the amounts reported on Schedule A, Part I, line 40            • Form 328: Tax Credit for Employers of Employees With 
and Schedule A, Part II, line 3.                                              Impairments
Note: If the taxpayer has net operating loss carryovers and in-             • Form 329: Pass-Through Business Alternative Income Tax 
      come that is taxable for New Jersey Corporation Business                Credit
      Tax purposes, the taxpayer can reduce such allocated 
      income by their net operating loss carryover after the tax-           • Form 330: Apprenticeship Program Tax Credit
      payer reduces their regular allocated entire net income.              • Form 331: Tax Credit for Employer of Organ/Bone Marrow 
      See N.J.S.A. 54:10A-4(w); N.J.S.A. 54:10A-4(u); N.J.S.A.                Donor
      54:10A-4(v); N.J.S.A. 54:10A-4.6(h); N.J.S.A. 54:10A-5(c)
        (2); and N.J.S.A. 54:10A-5(c)(3).                                   • Form 332: Tiered Subsidiary Dividend Pyramid Tax Credit
Any taxpayer claiming an NOL deduction must submit the                      • Form 333: Personal Protective Equipment (PPE) Manufactur-
last Net Operating Loss Schedule/Worksheet Prior to Con-                      ing Tax Credit
version to S Corporation (from CBT-100 or CBT-100U).                        • Form 334: Innovation Evergreen Fund Tax Credit
                                                                            • Form 335: Unit Concrete Products Tax Credit
Additional Forms and Instructions
Most of the forms and schedules needed to complete the return 
are included with Form CBT-100S. However, there are several 

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