Instructions For Form Git-317 - Sheltered Workshop Tax Credit (Page 2 of 2) in pdf

Instructions For Form Git-317 - Sheltered Workshop Tax Credit Page 2

NJ Tax (after credit for taxes paid to other jurisdictions)

Enter amount of NJ Tax after the credit for taxes paid to other jurisdictions.. This amount can be found on line 40 of

Form NJ-1040, line 39 of Form NJ-1040NR, or line 27 of Form NJ-1041.

Apportioned NJ tax

Multiply line 7 by line 6 and enter this amount onto line 8.

Maximum Allowable Credit

Multiply line 8 by 50% and enter this amount onto line 9.

10.

Earned Income Tax Credit

This amount can be taken from line 50 of Form NJ-1040 (this credit is only allowable to NJ residents). If taxpayer is

including more than one entity, then the EITC should be prorated based on the combined NJ allocated income.

11.

Allowable credit

Subtract line 10 from line 9 and enter onto line 11. If this subtraction is zero or less, make no entry.

12.

Current year credit

Choose the lesser of line 3 or line 11 and enter onto line 12.

13.

Carryover credit

Subtract line 12 from line 3 and enter onto line 13. This amount should also be entered into line 42 of Form NJ-1040,

line 40 of Form NJ-1040NR, or line 28 of Form NJ-1041.

Part V

SHELTERED WORKSHOP TAX CREDIT CARRYOVER WORKSHEET

The amount of the tax credit that cannot be applied to the current tax period due to the applicable limitations can be carried

over to the seven privilege periods following the privilege period for which the credit was allowed. Complete this worksheet to

validate the tax credit carryover amount.

Instructions For Form Git-317 - Sheltered Workshop Tax Credit Page 2