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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I belong to a NJ S Corp but I am no longer a NJ resident.

Customer Question

I belong to a NJ S Corp but I am no longer a NJ resident. Does the corporation need to pay an estimated tax on my behalf when I file the taxes?
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

What are the New Jersey income tax responsibilities of nonresident shareholders of a New
Jersey S corporation?
Nonresident taxpayers will report their pro rata share of S corporation income allocated to New Jersey of the New Jersey S corporation, pursuant to N.J.S.A. 54A:5-8(6).
See here - page 2
http://www.state.nj.us/treasury/taxation/pdf/pubs/corp/git9s.pdf
Payment of Tax by Nonresident Shareholders Estimated Tax Payments An S corporation is not required to withhold income tax from a nonresident shareholder’s pro rata share of S corporation income. You should consider making estimated income tax payments to cover the amount of your taxable S corporation income.
Nonconsenting Shareholders If you are a nonresident of New Jersey and become a shareholder in an S corporation that has made the election to be treated as a New Jersey S corporation and you have failed to consent to that election, the S corporation is required to withhold income tax from your pro rata share of S corporation income. Payments made by the S corporation on your behalf are reported to you on Schedule NJ‑K‑1, Form CBT‑100S and must be included as New Jersey estimated tax payments on your Form NJ‑1040NR. To receive credit, you must enclose a copy of your Schedule NJ-K-1(s) with your nonresident income tax return.

Customer: replied 9 months ago.
Thank you. I was in a partnership and had to withhold. I guess it is different for s corps.
Expert:  Lev replied 9 months ago.

Yes - rules for partnerships are different.

For S-corporation withholding is required only for shareholders who failed to consent to that election.