GIT and CBT Partnership Returns - 1065i Instructions

Sep 19, 2026

Instructions for completing New Jersey partnership tax returns under the Gross Income Tax Act (GIT) and the Corporation Business Tax Act (CBT). It explains which entities must file NJ-1065 (including gross income tax and related filing fees), when CBT filing is required via NJ-CBT-1065, and how separate payment vouchers are used. Definitions cover partnership treatment, tiered partnerships (Schedule A before Schedule O), nonresident partners, qualified investment partnerships, hedge fund status evaluation, and investment clubs and their potential filing-fee exemptions.

LanguageEnglish

CategoryForms

FormatPDF

Pages5

Reading Time2 min

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Instructions

GIT and CBT Partnership Returns

General Instructions and Definitions

Tiered Partnerships and Partner Types

Qualified Investment Partnerships and Hedge Fund Status

Investment Clubs and Exemptions

2025 NJ-CBT-1065 Instructions GIT and CBT Partnership Returns The Division has two partnership tax returns: Forms NJ-1065 and NJ-CBT-1065 . The Gross Income Tax Act (GIT) at N.J.S.A. 54A:8-6 requires entities classified asa partnership for federal income tax purposes having a resident owner or income derived from New Jersey sources to file a Gross Income Tax return, NJ-1065 . Partnerships with more than two owners and income or loss from New Jersey sources may also be subject toa filing fee. The fee is calculated and reported on the NJ-1065 . The Corporation Business Tax Act (CBT) at N.J.S.A. 54:10A-15 .11 imposes a tax on certain partnerships that have nonresident owners. Partnerships subject to the CBT tax must file the NJ-CBT-1065 . The separate forms help distinguish the differences that exist between the Gross Income Tax and Corporation Business Tax Acts. The filing fee is reported directly on the NJ-1065 . The GIT filing fee is remitted with the Partnership Payment Voucher (NJ-1065-V) . If the entity is also required to calculate and report Corporation Business Tax, the entity must complete and file the NJ-CBT-1065 . If the entity has a CBT balance due, it is remitted with the Corporation Business Tax–Partnership Payment Voucher (NJ-CBT-V) . Partnerships that are members of an entity electing to pay the Pass-Through Business Alternative Income Tax and that choose to apply the credit for their share of the tax to their nonresident partners tax must claim the crediton the NJ-CBT-1065 . General Instructions Definitions Partnership, for tax purposes, means and includes a syndicate, group, pool, joint venture, and any other unincorporated organization through or by means of which any business, financial operation, or venture is carried on and that is not a corporation, trust, or estate within the meaning of the New Jersey Gross Income Tax Act. Only entities that qualify for and elect to be treated as a partnership for federal tax purposes (for example, limited liability companies and limited liability partnerships) are treated as partnerships under the New Jersey Gross Income Tax Act. “Tiered” Partnerships are arrangements in which one partnership, the upper-tier or “parent” partnership, is a member of, or holds an ownership interest in, another partnership (called the lower-tier or “subsidiary” partnership) . Tiered partnerships must complete Schedule A, NJ-1065 before completing Schedule O, if applicable. Partner means any owner of a partnership interest. Nonresident Noncorporate Partner means an individual, an estate, or a trust subject to taxation pursuant to the New Jersey Gross Income Tax Act that is not a resident taxpayer or a resident estate or trust under that Act. Nonresident Corporate Partner means a partner that isnot an individual, an estate, or a trust subject to taxation pursuant to the New Jersey Gross Income Tax Act, that is not a corporation exempt from tax pursuant to N.J.S.A. 54:10A-3, and that does not maintain a regular place of business in this State other than a statutory office. Qualified Investment Partnership means a partnership that has more than 10 members or partners with no member or partner owning more than a 50% interest in the entity and that derives at least 90% of its gross income from dividends, interest, payments with respect to securities, loans, and gains from the sale or other disposition of stocks or securities or foreign currencies or commodities or other similar income (including but not limited to gains from swaps, options, futures, or forward contracts) derived with respect to its business of investing or trading in those stocks, securities, currencies, or commodities, but “investment partnership” does not include a “dealer in securities” within the meaning of section 1236 of the federal Internal Revenue Code of 1986. Hedge Fund Status is met for New Jersey tax purposes if the investment entity’s only activity is the purchase, holding, or sale of int

FAQs

Which entities are required to file NJ-1065 under the Gross Income Tax Act (GIT)?

Entities classified as partnerships for federal income tax purposes that have a resident owner or income derived from New Jersey sources must file NJ-1065.

When must a partnership also file NJ-CBT-1065 under the Corporation Business Tax Act (CBT)?

Partnerships subject to CBT tax because they have nonresident owners must file NJ-CBT-1065.

How do tiered partnerships complete NJ-1065 schedules?

Tiered partnerships must complete Schedule A, NJ-1065 before completing Schedule O, if applicable.

Sep 19, 2026

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