Schedule NJ-BUS-2 (Form NJ-1040), Alternative Business Calculation Adjustment, is a 2024 New Jersey Gross Income Tax schedule published by the NJ Division of Taxation. It compares the business income reported on your Form NJ-1040 with the alternative business income figured on Schedule NJ-BUS-1 and produces an adjustment that you carry to Form NJ-1040. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the original PDF is published by the Division at nj.gov.
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What is NJ-BUS-2?
Schedule NJ-BUS-2 (Form NJ-1040), Alternative Business Calculation Adjustment, is the 2024 New Jersey Gross Income Tax schedule from the NJ Division of Taxation that compares regular business income with alternative business income and computes an adjustment carried to Form NJ-1040.
The schedule has three parts. Part I lists four kinds of income in two columns: Column A, Reportable Regular Business Income (Loss), taken from lines 18, 21, 22 and 23 of Form NJ-1040, and Column B, Alternative Business Income (Loss), taken from line 4 of the matching part of Schedule NJ-BUS-1 (Form NJ-1040). Line 5b adds any loss carried forward from tax year 2023. Part II subtracts the alternative total from the regular total to get the business increment and multiplies it by the adjustment percentage, which is 50% (0.50) for tax year 2024. Part III records any loss to carry forward to tax year 2025.
This document is a schedule, not the return: Form NJ-1040 is the return the schedule supports, and Schedule NJ-BUS-1 supplies the Column B amounts. The result on line 11 is entered on line 35 of Form NJ-1040.
Who needs to file NJ-BUS-2?
The schedule is built for taxpayers completing a 2024 Form NJ-1040 who report business-type income and have alternative business amounts on Schedule NJ-BUS-1 (Form NJ-1040). Its lines match the income types on the return:
- net profits from business (line 18 of Form NJ-1040);
- distributive share of partnership income (line 21);
- net pro rata share of S corporation income (line 22);
- net gain or income from rents, royalties, patents, and copyrights (line 23).
Taxpayers who carried a loss out of tax year 2023 also use it, because line 5b picks up the amount from line 12 of their 2023 Schedule NJ-BUS-2 (Form NJ-1040).
The form prints no eligibility test, filing threshold or exclusion, and it does not say who may sign or file for someone else. For questions about whether your situation calls for the schedule, refer to the instructions for Form NJ-1040 published by the NJ Division of Taxation.
When to file NJ-BUS-2
Complete Schedule NJ-BUS-2 when you prepare your 2024 Form NJ-1040, because its lines draw on amounts from that return and from Schedule NJ-BUS-1, and its line 11 result goes on line 35 of Form NJ-1040. No separate due date is printed on the schedule, so it travels with the return.
Two lines connect the schedule to other tax years. Line 5b brings in a loss from tax year 2023, taken from line 12 of your 2023 Schedule NJ-BUS-2. Line 12 records any loss to carry forward to tax year 2025, which you will need for next year's schedule. For any deadline that applies to Form NJ-1040, check the Division's instructions for that return.
How to fill out NJ-BUS-2
Enter your name and Social Security number
At the top, write your name(s) exactly as shown on Form NJ-1040 and your Social Security Number.
Complete line 1 for net profits
Line 1a: enter the amount from line 18 of Form NJ-1040. Line 1b: enter the amount from Part I, line 4, of Schedule NJ-BUS-1 (Form NJ-1040).
Complete line 2 for partnership income
Line 2a: enter the amount from line 21 of Form NJ-1040. Line 2b: enter the amount from Part II, line 4, of Schedule NJ-BUS-1.
Complete line 3 for S corporation income
Line 3a: enter the amount from line 22 of Form NJ-1040. Line 3b: enter the amount from Part III, line 4, of Schedule NJ-BUS-1.
Complete line 4 for rents and royalties
Line 4a: enter the amount from line 23 of Form NJ-1040. Line 4b: enter the amount from Part IV, line 4, of Schedule NJ-BUS-1.
Enter the 2023 loss carryforward
Line 5b: enter the amount from line 12 of your 2023 Schedule NJ-BUS-2 (Form NJ-1040). There is no line 5a entry.
Total Part I on line 6
Line 6a: enter the total of lines 1a through 4a. Line 6b: enter the total of lines 1b through 5b, netting gains with losses.
Carry the totals to lines 7 and 8
Line 7: enter the amount from line 6a. Line 8: enter the amount from line 6b, and if it is a loss, enter zero.
Figure the business increment on line 9
Subtract line 8 from line 7. If the result is zero, enter zero on line 11 and continue with line 12.
Apply the adjustment percentage
Line 10 is preprinted at 0.50, the 50% adjustment percentage for tax year 2024. On line 11, multiply line 9 by 0.50 and also enter the result on line 35 of Form NJ-1040.
Record the loss carryforward to 2025
Line 12: if the amount on line 6b is a loss, enter the amount of the loss; otherwise enter zero.
Review and download the completed PDF
Check each line against Form NJ-1040 and Schedule NJ-BUS-1, then download or print the completed PDF from FillingPDF and keep a copy for your records.
How to submit NJ-BUS-2
Schedule NJ-BUS-2 has no filing channel of its own. It supports Form NJ-1040, and the schedule prints no address, portal or appointment rule.
- With Form NJ-1040: complete the schedule first, because you enter the line 11 result on line 35 of Form NJ-1040. Then submit the return through the channel you use for Form NJ-1040.
- Your records: the schedule tells you to keep a copy for your records.
- Forms and instructions: the NJ Division of Taxation lists its forms and instructions at https://www.nj.gov/treasury/taxation/forms/.
FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Entering a loss on line 8 instead of zero; the form says to enter zero there if the total alternative business income is a loss.
- Forgetting to carry the line 11 result to line 35 of Form NJ-1040.
- Using a percentage other than 50% (0.50) on line 10 and line 11 for tax year 2024.
- Stopping after line 9 when it is zero; the form says to enter zero on line 11 and continue with line 12.
- Entering a figure on line 5a; only column B (line 5b) has an entry for the 2023 loss carryforward.
- Totaling line 6b without netting gains with losses.
- Entering a loss on line 12 when line 6b is a gain; line 12 is zero unless line 6b is a loss.
- Taking line 5b from anything other than line 12 of your 2023 Schedule NJ-BUS-2 (Form NJ-1040).
- Not keeping a copy of the completed schedule, which the form tells you to do.
Frequently asked questions
What is Schedule NJ-BUS-2 (Form NJ-1040)?
Schedule NJ-BUS-2 (Form NJ-1040) is the New Jersey Gross Income Tax schedule titled Alternative Business Calculation Adjustment. It compares regular business income with alternative business income and computes an adjustment that you enter on line 35 of Form NJ-1040.
What is the adjustment percentage on Schedule NJ-BUS-2 for 2024?
For tax year 2024 the adjustment percentage is 50% (0.50). It is preprinted on line 10, and on line 11 you multiply the business increment from line 9 by 0.50.
Where does the line 11 amount go?
Enter the line 11 amount on line 35 of Form NJ-1040. The schedule's line 11 says to enter it there as well as on line 11 itself.
What goes on line 5b of Schedule NJ-BUS-2?
Line 5b is the loss carryforward from tax year 2023. Enter the amount from line 12 of your 2023 Schedule NJ-BUS-2 (Form NJ-1040); this line has no column A entry.
What do I enter on line 8 if I have an alternative business loss?
Enter zero. Line 8 takes the amount from line 6b, and the form says that if it is a loss you enter zero there. The loss itself goes on line 12 for carryforward to tax year 2025.
Where do I send Schedule NJ-BUS-2?
The schedule prints no address or portal of its own. It supports Form NJ-1040, so you submit it through the channel you use for that return, and you keep a copy for your records.
Can I fill out Schedule NJ-BUS-2 online?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the schedule with the NJ Division of Taxation; you submit it through the Division's channels for Form NJ-1040.
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