In some cases, New Jersey requires taxpayers to file a part year and nonresident return. How do I set that up in Drake?
The state of New Jersey will, in some cases, require that both a part year and nonresident return be filed. If a taxpayer’s tax situation meets this specific criteria, you may e-file one of the required New Jersey returns, and then paper file the other return.
For example, if you decide to e-file the part year return:
- Complete the New Jersey part year return, and e-file it.
- Once the return has been filed and accepted by the state, create an archive of the e-filed return in order to preserve a copy of that return (or verify that the archive was created automatically).
- Return to Data Entry and make changes in order to force the New Jersey nonresident return. On the States tab, open New Jersey Data Entry. On New Jersey screen 1 General Information, check the box labeled “Resident State is PY but Filing as New Jersey Nonresident,” and enter the Resident State abbreviation. Make any additional changes necessary for the preparation of the nonresident return.
- Once the nonresident return has been completed, it may be printed and paper filed.
- Be sure to create an archive of the nonresident return as well, so that you will have preserved copies of both returns. In View, click Archive, then Archive Return. You will be asked to create a unique name for this return – for example “Paper filed NJ Nonresident Return.”
- If you need to access these archived files in the future, return to View, click Archive, then Archive Manager. You will see both returns listed, and can restore either.
For additional information on determining New Jersey residency status, see the instructions for the NJ 1040 and the NJ 1040NR returns.
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