Hi, I am trying to file NJ 1040NR for 2011 as I was employed for two and half months last year in New Jersey. I have two questions in filling the form.
1) The section that says "Amount of GROSS INCOME from (EveryWhere)".
I do not know if I need to fill in this column same as the column B as long as I
Did not receive any other remuneration for the stated period of 2 1/2 months.
Could some body confirm?
2) The amount of Exemptions may need to be prorated for 2 1/2 months. Am I
Right?

Thanks,
Sudhakar

Just to verify - during those 2-1/2 months that you worked in NJ you actually commuted from another state, correct? For column A you list all income from everywhere for the full year. The purpose of this column is to report your full annual income in order to determine your tax bracket, and you'll actually calculate a preliminary tax based on your full income (line 37). But then in line 38 you multiply by the percentage of your income that is NJ source, and hence end up with a final tax calculation that is based solely on NJ source income.

Exemptions on line 30 are for the full year - so do not pro-rate. In effect this amount gets pro-rated by the percentage in line 38.

Thanks for your clarification. I have few more questions in regards to this. Yes - I commute weekely back to Virginia.
1) Do I just put one amount as calculated a tax software for Virginia gross AGI based on my federeal taxes for the whole year?
My question above is based upon my filing having itemized deductions etc.,. What will be the best AGI to reflect in Column A so that I am prorating appropriately if Virginia AGI would not be accurate?

Thanks once again,
Sudhakar

The process for your VA return is you first complete the NJ non-resident return, then completd the VA return. On the VA return you will report all income as reported as AGI on your federal return (including what you earned in NJ), and calculate a tax on it all, but then take a credit for taxes paid to other jurisdictions (namely NJ).

You referenced Column A again, which is part of the NJ non-resident return. For NJ you don't simply enter your federal AGI like you do for VA; NJ requires that you enter all income separately including wages, dividends, interest, capital; gains etc - similar to how the federal return works.

I have schedule C amount and some expenses based on that with itemized deductions for Federal. Do I just report the net Schedule C amount as calculated by Tax software for NJ Schedule C amount? The 1040NR is asking the Federal Schedule C form to be enclosed. In this case, would I not be able to submit my 1040 NR for New Jersey online?

Thanks for your help,
Sudhakar

Could you please answer to these last questions so that I can file a return in time?

Thanks,
Sudhakar

NJ Schedule C has a different purpose than 1040 Schedule C. You report your federal numbers from 1040 Schedule C on NJ-1040NR line 17. And yes - you must enclose your federal 1040 Schedule C, as the instructions indicate. However, if you're using tax software it may allow you to e-file and automatically include a copy of federal 1040 Schedule C with the e-filing. I suggest you try e-filing with NJ and see what the software says. If it tells you that you must submit a paper copy do so (it's not the end of the world).

The only issue is that the tax software that I am using is preparing for me my permanent domicile state return only. It is not letting me create additional state return. I would then just submit a paper copy by NJ 1040 NR by copying line items from Federal and calculate proportionate tax as illustrated in the form and by attaching a copy of Federal Schedule C.

Thanks,
Sudhakar

Popular siftware packages like TaxCut and TurboTax allow you to prepare returns for multiple states, but of course you have to pay for each state software module beyond the first. If you haven't bought the module for preparing the NJ tax return then I think you'll be stuck with doing it by hand and mailing your return in.