The state of New Jersey has made the following tax law changes for tax year 2022:
- "Under the New Jersey College Affordability Act, if your gross income was $200,000 or less, you may be eligible to deduct certain educational expenses."
- Qualified distributions from NJBEST accounts are now exempt. According to New Jersey, "if you deducted contributions to an NJBEST account on a New Jersey Income Tax return, then later take a nonqualified distribution from that account, the portion of the distribution that is attributable to any contributions previously deducted (and any interest earned) is taxable."
New Jersey Child Tax Credit - NJ residents that report taxable income of $80,000 or less are eligible for a $500 credit for each dependent age 5 or younger. You cannot claim the credit if filing Married Filing Separately.
You can now make donations to the following organizations:
- New Jersey Pediatric Cancer Research Fund
- Special Olympics New Jersey Fund
You can read more about these tax law changes here.