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Enter all applicable Federal amounts for the unit in the Federal Screen K1 or K1T before accessing the State Allocation Spreadsheet. If an allocation percentage is entered for New Jersey and the Apply button is clicked, each Federal amount is multiplies by the percentage and displays in the New Jersey column within the spreadsheet. If, after a percentage has been applied, one or two amounts need to be adjusted, place your cursor in the spreadsheet cell and change the amount. If New Jersey is listed as the first or primary state within the spreadsheet, the newly allocated amounts transfer to the SID fields in Screen K1 or K1T.

Upon first entry to the allocation spreadsheet, the following is the default behavior:

• New Jersey processed as a resident with other part-year or nonresident states: If the related Federal screen has a postal code of NJ or a postal code of a non-processed state, NJ appears first within the allocation spreadsheet as a primary state. If the related Federal screen postal code is not NJ and that state is being processed, New Jersey, as the resident state processed, appears in the second position within the allocation spreadsheet as second primary behind the primary state. When New jersey is considered primary or second primary all of that unit income is considered taxable New Jersey; therefore, the amount fields within the spreadsheet are blank. This allows the application to transfer the Federal amounts into the NJ Source Income fields in Screen K1 or K1T, within the NJ input screens, because no State If Difference amounts are present.

• New Jersey processed as a resident with other resident states: Because the application reserves two primary columns within the spreadsheet, processing clients with multiple resident states attached may cause undesirable behavior. If you are processing a client with more than two resident states attached and the related Federal screen postal code is not NJ, New Jersey may fall third or more in the spreadsheet order and will no longer be considered primary or second primary. The default amounts used to process that unit's income are considered and appear as 0. An allocation percentage or amount must be entered for New Jersey under these circumstances to allow 100% of that unit's income to be considered as New Jersey taxable amounts.

• New Jersey processed as a part-year or nonresident state: If the related Federal screen postal code is entered as NJ, New Jersey is considered primary and defaults to 100% of the income as sourced to New Jersey so the amount fields are blank. If the related Federal screen postal code is not NJ, New Jersey is not considered primary regardless of the position in the allocation spreadsheet and is automatically assigned 0 in applicable amount fields.

Enter the appropriate percentage or amount for New Jersey if the default behavior has not produced the results you are looking for or if the income should be considered something other than 100% or 0% allocable to New Jersey.

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