diff --git a/changelog.d/state-gross-income-estate-income.fixed.md b/changelog.d/state-gross-income-estate-income.fixed.md
new file mode 100644
index 00000000000..30ef543488b
--- /dev/null
+++ b/changelog.d/state-gross-income-estate-income.fixed.md
@@ -0,0 +1 @@
+Count a beneficiary's estate and trust income in Alabama AGI, Iowa gross income (which Iowa's tax uses through tax year 2022), Mississippi AGI, New Jersey gross income, New Mexico modified gross income, and Oklahoma gross household income for the sales tax and property tax credits.
diff --git a/policyengine_us/parameters/gov/states/al/tax/income/agi/gross_income_sources.yaml b/policyengine_us/parameters/gov/states/al/tax/income/agi/gross_income_sources.yaml
index c21a24968de..4ea1ffc3f3e 100644
--- a/policyengine_us/parameters/gov/states/al/tax/income/agi/gross_income_sources.yaml
+++ b/policyengine_us/parameters/gov/states/al/tax/income/agi/gross_income_sources.yaml
@@ -19,6 +19,9 @@ values:
     - partnership_s_corp_income
     - farm_operations_income
     - farm_rent_income
+    # Form 40, Part I, line 5: rents, royalties, partnerships, S corporations,
+    # trusts and estates (Alabama Schedule E, Part II).
+    - estate_income
 
 metadata:
   unit: list
@@ -35,7 +38,12 @@ metadata:
       href: https://www.taxformfinder.org/forms/2023/2023-alabama-form-40.pdf#page=2
     - title: 2024 Alabama Income Tax Instructions
       href: https://www.revenue.alabama.gov/wp-content/uploads/2025/01/24f40bk.pdf#page=7
-    - title: 2025 Alabama Income Tax Instructions
+    # Examples of income to report (page 7), Part I line 4, other income
+    # (page 14), and Part I line 5, rents, royalties, partnerships, estates,
+    # trusts, etc. (page 15).
+    - title: "2025 Alabama Income Tax Instructions, Form 40 Booklet #page 7,14-15"
       href: https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf#page=7
-    - title: 2025 Alabama Income Tax Instructions Form 40 Booklet, Part 1, Line 4 (Other Income)
-      href: https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf#page=14
+    - title: Code of Alabama 1975 Section 40-18-25(b) (income and deductions of beneficiaries of estates and trusts)
+      href: https://alison.legislature.state.al.us/code-of-alabama?section=40-18-25
+    - title: Ala. Admin. Code r. 810-3-25-.11 (Alabama taxable income of beneficiaries for taxable years beginning after December 31, 2004)
+      href: https://admincode.legislature.state.al.us/administrative-code/810-3-25
diff --git a/policyengine_us/parameters/gov/states/ia/tax/income/gross_income/sources.yaml b/policyengine_us/parameters/gov/states/ia/tax/income/gross_income/sources.yaml
index 1abc47597d6..d63e38ad3d7 100644
--- a/policyengine_us/parameters/gov/states/ia/tax/income/gross_income/sources.yaml
+++ b/policyengine_us/parameters/gov/states/ia/tax/income/gross_income/sources.yaml
@@ -13,6 +13,8 @@ values:
     - taxable_roth_conversions
     - partnership_s_corp_income
     - rental_income
+    # Line 10: rents, royalties, partnerships, estates, etc. (federal Schedule E)
+    - estate_income
     - farm_operations_income
     - taxable_unemployment_compensation
     - miscellaneous_income
@@ -23,9 +25,10 @@ metadata:
   reference:
   - title: 2021 IA1040 Iowa Income Tax Return, Lines 1-14
     href: https://revenue.iowa.gov/sites/default/files/2022-01/IA1040%2841-001%29.pdf#page=1
-  - title: 2021 IA1040 Income Tax Return instructions
+  # Line 10, rents, royalties, partnerships, estates, etc., is on page 19.
+  - title: "2021 IA1040 Income Tax Return instructions #page 12,19"
     href: https://revenue.iowa.gov/media/2650/download?inline#page=12
   - title: 2022 IA1040 Iowa Income Tax Return, Lines 1-14
     href: https://revenue.iowa.gov/sites/default/files/2023-01/2022IA1040%2841001%29.pdf#page=1
-  - title: 2022 IA1040 Income Tax Return instructions
+  - title: "2022 IA1040 Income Tax Return instructions #page 11,19"
     href: https://revenue.iowa.gov/media/2721/download?inline#page=11
diff --git a/policyengine_us/parameters/gov/states/ms/tax/income/income_sources.yaml b/policyengine_us/parameters/gov/states/ms/tax/income/income_sources.yaml
index 4fda82326a1..c89f46af683 100644
--- a/policyengine_us/parameters/gov/states/ms/tax/income/income_sources.yaml
+++ b/policyengine_us/parameters/gov/states/ms/tax/income/income_sources.yaml
@@ -7,6 +7,9 @@ values:
     - partnership_s_corp_income
     - loss_limited_net_capital_gains_person
     - rental_income
+    # Line 41: rental real estates, royalties, partnerships, S corporations,
+    # trusts, etc. (income or loss from federal Schedule E)
+    - estate_income
     - farm_operations_income
     - interest_income
     - qualified_dividend_income
@@ -31,5 +34,5 @@ metadata:
       href: https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100231.pdf#page=11 # Line 38 - 48
     - title: Mississippi Income Tax Instructions 2024
       href: https://www.dor.ms.gov/sites/default/files/Forms/Individual/80100241.pdf#page=10
-    - title: Mississippi Income Tax Instructions 2025
+    - title: "Mississippi Income Tax Instructions 2025 #page 10-11"
       href: https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf#page=10
diff --git a/policyengine_us/parameters/gov/states/nj/tax/income/gross_income/loss_eligible_categories/category_h.yaml b/policyengine_us/parameters/gov/states/nj/tax/income/gross_income/loss_eligible_categories/category_h.yaml
new file mode 100644
index 00000000000..a836e9b50c3
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/nj/tax/income/gross_income/loss_eligible_categories/category_h.yaml
@@ -0,0 +1,15 @@
+description: New Jersey classifies net gains or income derived through estates or trusts as Category (h) and disregards the net if negative under the same-category rule.
+values:
+  2021-01-01:
+    - estate_income  # Line 26: Income from estates and trusts (Schedule NJK-1)
+metadata:
+  unit: list
+  period: year
+  label: NJ Category (h) - Estates and trusts
+  reference:
+    - title: N.J.S. 54A:5-1(h)
+      href: https://law.justia.com/codes/new-jersey/title-54a/section-54a-5-1/
+    # Net losses by category of income (page 9) and line 26, income from
+    # estates and trusts (page 21).
+    - title: "2025 NJ-1040 Instructions #page 9,21"
+      href: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf#page=9
diff --git a/policyengine_us/parameters/gov/states/nm/tax/income/modified_gross_income.yaml b/policyengine_us/parameters/gov/states/nm/tax/income/modified_gross_income.yaml
index aeb990f7858..d5c5915bf83 100644
--- a/policyengine_us/parameters/gov/states/nm/tax/income/modified_gross_income.yaml
+++ b/policyengine_us/parameters/gov/states/nm/tax/income/modified_gross_income.yaml
@@ -17,11 +17,15 @@ values:
     - self_employment_income
     - sstb_self_employment_income
     - veterans_benefits
+    # NMSA 1978 § 7-2-2(L)(15): income from an interest in an estate or a trust
+    - estate_income
     # income such as gambling winnings, insurance settlements, scholarships,
-    # grants, trust income and inheritance,
+    # grants and inheritance,
 metadata:
   unit: list
   label: New Mexico modified gross income elements
   reference:
     - title: New Mexico Income Tax Act, Chapter 7 - Taxation, 7-2-2. Definitions, L
       href: https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503656/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgBsfYQEoANMmylCEAIqJCuAJ7QA5BskRCYXAiUr1WnXoMgAynlIAhdQCUAogBknANQCCAOQDCTyVIwACNoUnZxcSA
+    - title: 2025 PIT-RC instructions, line 11 (income from an estate or trust)
+      href: https://taxsim.nber.org/historical_state_tax_forms/NM/2025/NM_PIT_RC_INST.PDF#page=4
diff --git a/policyengine_us/parameters/gov/states/ok/tax/income/credits/gross_income_sources.yaml b/policyengine_us/parameters/gov/states/ok/tax/income/credits/gross_income_sources.yaml
index 562c3eb6094..856f98bac24 100644
--- a/policyengine_us/parameters/gov/states/ok/tax/income/credits/gross_income_sources.yaml
+++ b/policyengine_us/parameters/gov/states/ok/tax/income/credits/gross_income_sources.yaml
@@ -11,6 +11,9 @@ values:
     - long_term_capital_gains
     - interest_income
     - rental_income
+    # Forms 538-S and 538-H, line 11: gross (positive) income from rentals,
+    # royalties, partnerships, estates and trusts.
+    - estate_income
     - dividend_income
     - pension_income
     - debt_relief
@@ -37,5 +40,9 @@ metadata:
       href: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/past-year/2023/511-Pkt.pdf
     - title: 2024 Form 511 instructions
       href: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/past-year/2024/511-Pkt-2024.pdf
-    - title: 2025 Form 511 instructions
-      href: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
+    - title: 2025 Form 511 packet, Form 538-S, Part 3 (gross income lines 9 to 14)
+      href: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf#page=51
+    - title: 2025 Form 538-H, line 11 (gross positive income from rentals, royalties, partnerships, estates and trusts)
+      href: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/538-H.pdf#page=1
+    - title: Okla. Admin. Code 710:50-15-96(c) (gross household income is the gross income of every type)
+      href: https://www.law.cornell.edu/regulations/oklahoma/OAC-710-50-15-96
diff --git a/policyengine_us/tests/core/test_state_estate_income_invariants.py b/policyengine_us/tests/core/test_state_estate_income_invariants.py
new file mode 100644
index 00000000000..2cb59ded568
--- /dev/null
+++ b/policyengine_us/tests/core/test_state_estate_income_invariants.py
@@ -0,0 +1,177 @@
+"""Invariants for estate and trust income in state-built income concepts.
+
+Six states build an income concept from their own source list rather than
+from federal AGI, and each state's form puts a beneficiary's estate or trust
+income on a line the list already covers:
+
+- Alabama AGI: Form 40, Part I, line 5. Code of Ala. § 40-18-25(b) follows
+  federal Subchapter J for a beneficiary's income and deductions, so the
+  Schedule E amount enters signed.
+- Iowa gross income, tax years 2021 and 2022: IA 1040 line 10, "the income or
+  loss from federal Schedule E".
+- Mississippi AGI: Form 80-105 line 41, "the income or loss from activities
+  reported on Federal Schedule E".
+- New Jersey gross income: N.J.S. 54A:5-1(h), a category of its own, so
+  N.J.S. 54A:5-2 disregards a net loss.
+- New Mexico modified gross income: NMSA 1978 § 7-2-2(L)(15), "undiminished
+  by losses".
+- Oklahoma gross household income: Forms 538-S and 538-H line 11, "gross
+  (positive) income".
+
+Hypothesis draws batches of single filers with wages, interest, partnership
+income of either sign and an estate or trust amount of either sign; a seeded
+population adds breadth. Each batch runs as one vectorized simulation holding
+three copies of every filer in every state: no estate income, the estate
+amount, and the same amount entered as rental income instead. For every filer:
+
+1. Signed pass-through (Alabama, Iowa, Mississippi): the concept moves by
+   exactly the estate amount, loss or gain.
+2. Floored pass-through (New Jersey, New Mexico, Oklahoma): the concept moves
+   by exactly max(estate amount, 0), so a loss never lowers it and never
+   offsets wages, interest or partnership income.
+3. Differential against the existing rental line: the estate amount moves the
+   concept exactly as the same amount of rental income does, loss or gain.
+   Each state puts both on the same form line or under the same loss rule.
+
+The identities hold for this income mix. The federal EITC is set to zero
+because Oklahoma counts it (Form 538-S line 9) and an estate loss changes it.
+"""
+
+import numpy as np
+from hypothesis import HealthCheck, given, settings
+from hypothesis import strategies as st
+
+from policyengine_us import Simulation
+
+TOLERANCE = 0.01  # dollars
+
+# (state, variable, year, whether an estate or trust loss passes through)
+CONCEPTS = [
+    ("AL", "al_agi", 2025, True),
+    ("IA", "ia_gross_income", 2022, True),
+    ("MS", "ms_agi", 2025, True),
+    ("NJ", "nj_gross_income", 2025, False),
+    ("NM", "nm_modified_gross_income", 2025, False),
+    ("OK", "ok_gross_income", 2025, False),
+]
+YEARS = sorted({year for _, _, year, _ in CONCEPTS})
+VARIANTS = ("none", "estate", "rental")
+
+amounts = st.one_of(
+    st.just(0.0),
+    st.integers(-200_000, -1).map(float),
+    st.integers(1, 400_000).map(float),
+)
+
+
+@st.composite
+def filers(draw):
+    return {
+        "wages": float(draw(st.integers(0, 300_000))),
+        "interest": float(draw(st.integers(0, 40_000))),
+        "partnership": float(draw(st.integers(-50_000, 100_000))),
+        "estate": draw(amounts),
+    }
+
+
+SEED = 20261010
+
+
+def _seeded_filers(n=60):
+    rng = np.random.default_rng(SEED)
+    drawn = [
+        {
+            "wages": float(rng.integers(0, 300_001)),
+            "interest": float(rng.integers(0, 40_001)),
+            "partnership": float(rng.integers(-50_000, 100_001)),
+            "estate": float(
+                rng.choice(
+                    [0, rng.integers(-200_000, 0), rng.integers(1, 400_001)],
+                    p=[0.1, 0.4, 0.5],
+                )
+            ),
+        }
+        for _ in range(n)
+    ]
+    edges = [
+        # Nothing but an estate or trust loss.
+        {"wages": 0.0, "interest": 0.0, "partnership": 0.0, "estate": -40_000.0},
+        # Nothing but estate or trust income.
+        {"wages": 0.0, "interest": 0.0, "partnership": 0.0, "estate": 25_000.0},
+        # An estate loss beside partnership income of the same size.
+        {"wages": 50_000.0, "interest": 0.0, "partnership": 8_000.0, "estate": -8_000.0},
+        # An estate gain beside a partnership loss of the same size.
+        {"wages": 50_000.0, "interest": 0.0, "partnership": -8_000.0, "estate": 8_000.0},
+    ]  # fmt: skip
+    return drawn + edges
+
+
+def _situation(units):
+    def every_year(value):
+        return {year: value for year in YEARS}
+
+    people, tax_units, households = {}, {}, {}
+    for state, _, _, _ in CONCEPTS:
+        for variant in VARIANTS:
+            for i, unit in enumerate(units):
+                name = f"{state}_{variant}_{i}"
+                people[name] = {
+                    "age": every_year(45),
+                    "employment_income": every_year(unit["wages"]),
+                    "taxable_interest_income": every_year(unit["interest"]),
+                    "partnership_s_corp_income": every_year(unit["partnership"]),
+                    "estate_income": every_year(
+                        unit["estate"] if variant == "estate" else 0.0
+                    ),
+                    "rental_income": every_year(
+                        unit["estate"] if variant == "rental" else 0.0
+                    ),
+                }
+                tax_units[name] = {"members": [name], "eitc": every_year(0)}
+                households[name] = {
+                    "members": [name],
+                    "state_code": every_year(state),
+                }
+    return {"people": people, "tax_units": tax_units, "households": households}
+
+
+def _check(units):
+    sim = Simulation(situation=_situation(units))
+    n = len(units)
+    estate = np.array([unit["estate"] for unit in units])
+    for index, (state, variable, year, loss_passes_through) in enumerate(CONCEPTS):
+        # One person per tax unit and household, in insertion order, so a
+        # person-level and a tax-unit-level concept index the same way.
+        values = np.asarray(sim.calculate(variable, year), dtype=float)
+        start = index * len(VARIANTS) * n
+        none, with_estate, with_rental = (
+            values[start + k * n : start + (k + 1) * n] for k in range(len(VARIANTS))
+        )
+        expected = estate if loss_passes_through else np.maximum(estate, 0)
+
+        # 1 and 2. Pass-through, signed or floored.
+        np.testing.assert_allclose(
+            with_estate - none, expected, atol=TOLERANCE, err_msg=f"{state} {variable}"
+        )
+
+        # 3. Differential against the rental line.
+        np.testing.assert_allclose(
+            with_estate,
+            with_rental,
+            atol=TOLERANCE,
+            err_msg=f"{state} {variable} against rental income",
+        )
+
+
+@settings(
+    max_examples=4,
+    deadline=None,
+    suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large],
+)
+@given(st.lists(filers(), min_size=1, max_size=10))
+def test_state_estate_income_invariants(units):
+    _check(units)
+
+
+def test_state_estate_income_invariants_seeded_population():
+    _check(_seeded_filers())
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/tax/income/al_agi.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/tax/income/al_agi.yaml
index d1b72912602..42ae27d40ee 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/al/tax/income/al_agi.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/tax/income/al_agi.yaml
@@ -68,3 +68,27 @@
     # AGI leaves all of them on the child's return.
     adjusted_gross_income: 40_000
     al_agi: 48_500
+
+- name: A beneficiary's estate or trust income is in Alabama AGI
+  period: 2025
+  input:
+    state_code: AL
+    irs_employment_income: 30_000
+    estate_income: 5_000
+  output:
+    # Form 40, Part I, line 5 carries Schedule E estate and trust income:
+    # 30,000 + 5,000.
+    al_agi: 35_000
+
+- name: A beneficiary's estate or trust loss on Schedule E reduces Alabama AGI
+  period: 2025
+  input:
+    state_code: AL
+    irs_employment_income: 30_000
+    estate_income: -5_000
+  output:
+    # Code of Ala. § 40-18-25(b) follows federal Subchapter J for a
+    # beneficiary's income and deductions, so depreciation, depletion and
+    # amortization apportioned to the beneficiary can exceed the income:
+    # 30,000 - 5,000.
+    al_agi: 25_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_gross_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_gross_income.yaml
index 7337123adcd..650bcdb385a 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_gross_income.yaml
@@ -5,3 +5,24 @@
     state_code: IA
   output:
     ia_gross_income: 100_000
+
+- name: Estate and trust income is included in Iowa gross income
+  period: 2022
+  input:
+    irs_employment_income: 30_000
+    estate_income: 5_000
+    state_code: IA
+  output:
+    # 2022 IA 1040 line 10 reports federal Schedule E income, which includes
+    # estates and trusts: 30,000 + 5,000.
+    ia_gross_income: 35_000
+
+- name: An estate or trust loss on federal Schedule E reduces Iowa gross income
+  period: 2022
+  input:
+    irs_employment_income: 30_000
+    estate_income: -5_000
+    state_code: IA
+  output:
+    # Line 10 is "the income or loss from federal Schedule E": 30,000 - 5,000.
+    ia_gross_income: 25_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_agi.yaml b/policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_agi.yaml
index 19d71f5778f..585f37ffda5 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_agi.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_agi.yaml
@@ -94,3 +94,25 @@
     # 2,119.43) plus health insurance 3,000. The spouse has no adjustment.
     ms_agi_adjustments: [5_119.43, 0]
     ms_agi: [24_880.57, 20_000]
+
+- name: Estate and trust income is included in Mississippi AGI
+  period: 2025
+  input:
+    irs_employment_income: 30_000
+    estate_income: 5_000
+    state_code: MS
+  output:
+    # Form 80-105 line 41 reports federal Schedule E income, which includes
+    # trusts: 30,000 + 5,000, with no adjustments.
+    ms_agi: 35_000
+
+- name: An estate or trust loss on federal Schedule E reduces Mississippi AGI
+  period: 2025
+  input:
+    irs_employment_income: 30_000
+    estate_income: -5_000
+    state_code: MS
+  output:
+    # Line 41 is "the income or loss from activities reported on Federal
+    # Schedule E": 30,000 - 5,000.
+    ms_agi: 25_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/gross_income/nj_gross_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/gross_income/nj_gross_income.yaml
index 982a865f105..abb9e4da450 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/gross_income/nj_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/gross_income/nj_gross_income.yaml
@@ -198,3 +198,25 @@
     # 50_000 wages + 10_000 Roth conversion = 60_000
     nj_gross_income: 60_000
     nj_income_tax: 1_767.25
+
+- name: NJ gross income includes income derived through estates or trusts
+  period: 2025
+  input:
+    employment_income: 50_000
+    estate_income: 8_000
+    state_code: NJ
+  output:
+    # N.J.S. 54A:5-1(h), reported on NJ-1040 line 26: 50,000 + 8,000.
+    nj_gross_income: 58_000
+
+- name: NJ same category rule - an estate or trust loss does not offset partnership income
+  period: 2025
+  input:
+    employment_income: 50_000
+    partnership_s_corp_income: 3_000
+    estate_income: -8_000
+    state_code: NJ
+  output:
+    # N.J.S. 54A:5-2: the category (h) net loss is disregarded, so
+    # 50,000 + 3,000 + max(-8,000, 0) = 53,000.
+    nj_gross_income: 53_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/nm_modified_gross_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/nm_modified_gross_income.yaml
index 9e37896d514..06c92d3744d 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/nm_modified_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/nm_modified_gross_income.yaml
@@ -90,3 +90,23 @@
     state_code: NM
   output:
     nm_modified_gross_income: 0
+
+- name: NM modified gross income includes income from an estate or trust
+  period: 2025
+  input:
+    state_code: NM
+    irs_employment_income: 20_000
+    estate_income: 5_000
+  output:
+    # NMSA 1978 § 7-2-2(L)(15): 20,000 + 5,000.
+    nm_modified_gross_income: 25_000
+
+- name: NM modified gross income is undiminished by an estate or trust loss
+  period: 2025
+  input:
+    state_code: NM
+    irs_employment_income: 20_000
+    estate_income: -5_000
+  output:
+    # § 7-2-2(L): "undiminished by losses". max(-5,000, 0) = 0, so 20,000.
+    nm_modified_gross_income: 20_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ok/tax/income/ok_gross_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/ok/tax/income/ok_gross_income.yaml
index bf873261215..72d1c4817d2 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ok/tax/income/ok_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ok/tax/income/ok_gross_income.yaml
@@ -27,3 +27,33 @@
     state_code: OK
   output:
     ok_gross_income: 38_566
+
+- name: OK gross income includes estate and trust income, which can end the sales tax credit
+  period: 2025
+  input:
+    age: 40
+    irs_employment_income: 18_000
+    estate_income: 3_000
+    eitc: 0
+    state_code: OK
+  output:
+    # Form 538-S line 11: 18,000 + 3,000 = 21,000, over the 20,000 limit
+    # for a filer with no dependents who is under 65 and not disabled.
+    ok_gross_income: 21_000
+    ok_stc: 0
+
+- name: OK gross income leaves out an estate or trust loss
+  period: 2025
+  input:
+    age: 40
+    irs_employment_income: 18_000
+    estate_income: -3_000
+    # The loss lowers federal AGI into the childless EITC range, and line 9
+    # counts the EITC; set it to zero to isolate line 11.
+    eitc: 0
+    state_code: OK
+  output:
+    # Line 11 takes gross (positive) income only: 18,000 + max(-3,000, 0).
+    # 18,000 is within the 20,000 limit, so the credit is 40 for one person.
+    ok_gross_income: 18_000
+    ok_stc: 40
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/adjusted_gross_income/nj_gross_income.py b/policyengine_us/variables/gov/states/nj/tax/income/adjusted_gross_income/nj_gross_income.py
index 6a45290aec1..bad7256143f 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/adjusted_gross_income/nj_gross_income.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/adjusted_gross_income/nj_gross_income.py
@@ -22,5 +22,6 @@ def formula(person, period, parameters):
         total = total + max_(add(person, period, cats.category_b), 0)
         total = total + max_(add(person, period, cats.category_c), 0)
         total = total + max_(add(person, period, cats.category_d), 0)
+        total = total + max_(add(person, period, cats.category_h), 0)
         total = total + max_(add(person, period, cats.category_k_p), 0)
         return total