Hill v. Director, Division of Taxation, Nos. 018645-2011, 017501-2011; Tax Court; opinion by Sundar, J.T.C.; decided and approved for publication October 23, 2013. DDS No. 35-5-1743 [17 pp.]
Plaintiffs Robert and Sarah Hill are minors and residents of Pennsylvania. They are each beneficiaries of two New Jersey resident trusts. For tax year 2006, Robert filed a New Jersey nonresident Gross Income Tax (GIT) return reporting zero as the amount of income from New Jersey sources, despite the NJK-1 statement attached to the trust’s income tax return showing that he received New Jersey source income from his trusts. Since he had reported “zero” as New Jersey source income, he also reported “zero” as the amount of GIT due. Consequently, he claimed the estimated taxes paid by the trustee as a refund.Substantially the same facts apply to Sarah, except for a small difference in the amounts.
