Updated October 24, 2026. Quick answer: Line 17 of the 2025 NJ-1040 is for dividends. The booklet says to “Enter the dividends you received from investments (e.g., from stocks, mutual funds) or other income-producing activities that do not constitute a trade or business.” Capital gains distributions are handled elsewhere: “Report this income on line 2, Schedule NJ-DOP.”
What this line asks
The line is labeled Dividends. The instructions open with “Enter the dividends you received from investments (e.g., from stocks, mutual funds) or other income-producing activities that do not constitute a trade or business.” They add “The total taxable dividends received, regardless of where earned, must be reported.”
For the state-level picture on investment income, see New Jersey dividends and interest and New Jersey retirement taxes. The federal counterpart is Form 1040 line 3a and 3b.
Who it applies to
The conditions the booklet prints for line 17 are about what the dividends are and who received them. It prints is a list of dividends that do not belong on this line: “Dividends that were earned and paid to a sole proprietorship, a partnership, or an S corporation.” and “Dividends that were earned and paid to an estate or trust (other than a grantor trust).”
The booklet sends the first group to Schedule NJ-BUS-1 and the second to line 26. For capital gains from selling investments, see New Jersey capital gains, and for trust payments see New Jersey trust income.
What the instructions say to enter
| Step | What the booklet says |
|---|---|
| What to enter | “Enter the dividends you received from investments (e.g., from stocks, mutual funds) or other income-producing activities that do not constitute a trade or business.” |
| Where earned | “The total taxable dividends received, regardless of where earned, must be reported.” |
| Business dividends | “Dividends that were earned and paid to a sole proprietorship, a partnership, or an S corporation. Report on Schedule NJ-BUS-1.” |
| Estate or trust dividends | “Dividends that were earned and paid to an estate or trust (other than a grantor trust). Report on line 26.” |
| Capital gains distributions | “Do not report capital gains distributions you received from mutual funds or other regulated investment companies on this line.” “Report this income on line 2, Schedule NJ-DOP.” |
| Tax-free distributions | “A distribution that is a return of your investment or capital and does not come from earnings or profits is a nontaxable capital or tax-free distribution.” |
| Insurance dividends | “Dividends you received from insurance companies are not taxable unless the amount you received is more than the premiums paid.” |
Where the result goes next
The booklet routes related income to other places. Capital gains distributions go to “line 2, Schedule NJ-DOP”, which feeds NJ-1040 line 19. It also says of insurance dividends: “Any interest from accumulated insurance dividends is taxable, and you must report it on line 16a.”
Line 17 itself is one of the income lines that the return later totals; the full set is in the New Jersey NJ-1040 line by line guide.
Part-year residents
The booklet prints one sentence for part-year residents on this line: “Include only the dividends you received while you were a resident of New Jersey.”
Edition and line numbers
This page reads the 2025 NJ-1040 New Jersey Resident Return booklet, the current file the New Jersey Division of Taxation served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Putting mutual fund capital gains distributions on line 17. The booklet says “Do not report capital gains distributions you received from mutual funds or other regulated investment companies on this line.”
- Reporting dividends paid to a business owned by you on this line. The booklet says “Dividends that were earned and paid to a sole proprietorship, a partnership, or an S corporation.” belong on Schedule NJ-BUS-1.
- Counting a return of capital as a dividend. The booklet says “These distributions reduce the basis of the stock or investment and are not taxable until your investment is fully recovered.”
Related: New Jersey dividends and interest, New Jersey retirement taxes, Form 1040 line 3a and 3b, New Jersey capital gains, and New Jersey trust income.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about investment income taxes
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with dividend income taxes
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 NJ-1040 New Jersey Resident Return booklet (instructions and forms), New Jersey Division of Taxation: www.nj.gov
- 2025 Form NJ-1040 New Jersey Resident Income Tax Return, New Jersey Division of Taxation: www.nj.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.