Listed below is income that can be subtracted from your New Jersey return:
Qualified Conservation Contributions
Contributions made for conservation purposes of a qualified real property located in New Jersey. Deduction is equal to the contribution allowed as a deduction when calculating taxable income for federal purposes.
Health Enterprise Zone Deduction
You may be able to deduct a percentage of net income from your medical practice that provides primary care services in or within 5 miles of a designated Health Enterprise Zone. See Technical Bulletin TB-56 for eligibility requirements and instructions for calculating the HEZ deduction.
Alternative Business Carryover Loss
Losses incurred from certain business-related categories of income may be used to calculate adjustments to your taxable income. The categories include net profits from business; net gains or net income from rents, royalties, patents, and copyrights; distributive share of partnership income; and net pro rata share of S Corp income. Unused losses may be carried forward.
Total Exemption Amount (Part-Year Residents Only)
Your total exemptions must be prorated based upon the number of months you were a New Jersey resident. For this calculation, 15 days or more is a month. This exemption is automatically calculated by the program on MJ-1040, Line 38.
Organ/Bone Marrow Donation Deduction
New Jersey residents who donate organs or bone marrow may deduct certain out-of-pocket expenses.
New Jersey College Affordability Deduction
If your gross income was $200,000 or less, you may be eligible to deduct certain educational expenses.
How Do I Enter these within the program?
To enter these subtractions on your New Jersey return, follow the steps below:
- State Section
- Edit New Jersey state return
- Subtractions from Income