The state of New Jersey has made the following tax law changes for tax year 2020:
- Retirement Income Exclusion: If all qualifications are met, you may be able to exclude up to $100,000 with the Retirement Income Exclusion. For additional information on income exclusions, click here.
- N.J. Earned Income Tax Credit: The New Jersey Earned Income Tax Credit has increased to 40% of the federal Earned Income Tax Credit.
- Pass-Through Business Alternative Income Tax: Partnership or S corporation members pay taxes on the entity's profits through their individual tax returns. "A new law allows the entity to pay the tax, and the member to receive a tax credit for the payment."
- Tax Deduction for Organ or Bone Marrow Donors: According to Lindsay's Law, New Jersey residents who donate organs or bone marrow may deduct certain out-of-pocket expenses.
You can read more about these tax law changes here.