New Jersey offers several credits that may reduce your tax liability or increase your refund. Use the Credits section to enter information for any credits that apply to your tax situation.
Program Entry
New Jersey Return → Credits
Property Tax Credit/Deduction
New Jersey offers eligible taxpayers either a Property Tax Deduction or a Property Tax Credit. The program will determine which benefit provides the greater tax advantage.
Select Begin to complete the Property Tax Credit/Deduction interview.
Did You Meet Property Tax Eligibility Requirements?
Select Yes if you meet New Jersey's property tax benefit requirements as a homeowner or renter who paid property taxes (or rent constituting property taxes) on a principal residence in New Jersey.
Select No if you do not qualify.
For more information, please see our article here.
Enter Property Taxes Paid and/or 18% of Net Rent Paid While a Resident of NJ
Enter:
- Property taxes paid on your principal New Jersey residence; or
- 18% of net rent paid, which New Jersey considers property taxes paid by renters.
Enter only the amount attributable to the period you were a New Jersey resident.
Type of Rent or Taxes Paid for Property Tax Deduction in 2025
Select the option that best describes the property taxes or rent paid during the year.
Will You Be Filing Form NJ-1040-HW to Claim Your Property Tax Credit?
Select Yes if you plan to file Form NJ-1040-HW, Property Tax Credit/Wounded Warrior Caregivers Credit Application.
Select No if you are not filing Form NJ-1040-HW.
Owner's Percentage
If the property had multiple owners, enter your ownership percentage as a whole number.
Example:
- 50% ownership = 50
- 100% ownership = 100
Unit Percentage
If the property was part of a multi-unit property, enter the percentage attributable to your unit.
Credit for Taxes Paid to Another State
New Jersey allows a credit when income is taxed by both New Jersey and another taxing jurisdiction.
Select Begin to enter information related to taxes paid to another state or political subdivision on income that is also taxed by New Jersey.
This credit helps prevent double taxation of the same income.
For more information on this credit, please review our article here.
Wounded Warrior Caregiver Credit (Schedule NJ-WWC)
The Wounded Warrior Caregiver Credit is available to certain taxpayers who provide care for a qualifying armed services member.
Select Begin to complete Schedule NJ-WWC.
Did You Provide Care for a Relative Who Was a Qualifying Armed Services Member?
Select Yes if you provided care for a qualifying service member who meets New Jersey's requirements.
Federal Disability Compensation of Service Member
Enter the amount of federal disability compensation received by the service member.
This information is used when determining eligibility for the credit.
Were You the Only Caregiver for This Service Member During the Tax Year?
Select Yes if you were the sole caregiver throughout the year.
Select No if care responsibilities were shared with other caregivers.
Share of Care Expenses
If multiple caregivers shared responsibilities, enter your percentage share of care provided.
Example:
- 100% = 100
- 50% = 50
Select the Qualifying Service Member
If the service member is claimed as a dependent on the federal return, select the individual from the list.
Qualifying Person Information
If the service member is not claimed on the federal return, enter:
- First Name
- Middle Initial
- Last Name
- Social Security Number
- Relationship to the taxpayer
Sheltered Workshop Tax Credit
Enter any Sheltered Workshop Tax Credit passed through to you from an entity or reported on supporting New Jersey tax documents.
This credit is generally associated with qualifying employment programs operating sheltered workshops.
Gold Star Family Counseling Tax Credit
Enter any Gold Star Family Counseling Tax Credit available to you.
This credit is generally associated with qualified counseling services provided to eligible Gold Star family members.
Credit for Employer of Organ/Bone Marrow Donor
Enter any credit passed through to you for an employer's expenses related to an employee serving as:
- An organ donor; or
- A bone marrow donor.
The amount entered should match supporting New Jersey tax documentation.
Pass-Through Business Alternative Income Tax Credit
Enter any Pass-Through Business Alternative Income Tax (BAIT) Credit reported to you.
This credit is commonly reported on:
- Schedule NJK-1
- Partnership documentation
- S Corporation documentation
The credit may be available when a New Jersey pass-through entity elects to pay the Business Alternative Income Tax at the entity level.
Override Calculated NJ Resident Taxable Income Used to Calculate NJ Child Tax Credit
If filing as a Part-Year Resident and claiming a dependent under age 6, New Jersey generally calculates resident taxable income automatically when determining eligibility for the NJ Child Tax Credit.
Enter an amount in this field only if an adjustment to the calculated resident taxable income is necessary.
This entry is most commonly used in unusual situations where the automatically calculated amount does not accurately reflect resident taxable income.
How Does This Affect My Return?
Credits entered in this section may:
- Reduce New Jersey tax liability.
- Increase your refund.
- Offset taxes paid to another jurisdiction.
- Provide benefits for property taxes, caregiving expenses, and pass-through entity taxes.
Notes
- Property tax benefits are calculated through the Property Tax Credit/Deduction interview.
- The Credit for Taxes Paid to Another State helps prevent double taxation.
- The Wounded Warrior Caregiver Credit is claimed using Schedule NJ-WWC.
- Property Tax Credits may require completion of Form NJ-1040-HW.
- Pass-Through Business Alternative Income Tax Credits are commonly reported on Schedule NJK-1.
- Keep all supporting documentation for credits claimed on the return.