INDIVIDUAL NEW JERSEY INCOME TAXES
INCOME TAXES
Who must file a New Jersey Income Tax Return? Your filing status and gross
income determine whether you have to file a tax return. Age is not a factor in
determining whether a person must file. Gross income means taxable income after
exclusions but before personal exemptions are subtracted.
Gross income includes wages, taxable interest, dividends, pensions, annuities, IRA withdrawals, net profits from business, net gains from disposition of property, net distributive share of partnership income, net pro rata share of S corporation income, net income from rents & royalties, net gambling winnings, alimony, estate and trust income, prizes and awards, and fees for services rendered including jury duty. New Jersey gross income also includes certain items that are not subject to Federal income tax such as interest from obligations of states other than New Jersey, income earned by a resident from foreign employment, and employee contributions to certain retirement plans such as 403(b), 457, and SEP plans.
Full-year residents who are single or married filing separate return must file a NJ tax return if their gross income is more than $10,000.
Full-year residents who are married and filing a joint return, head of household or qualifying widow or widower must file a NJ tax return if their gross income is more than $20,000.
You qualify for the NJ pension exclusion if you or your spouse is age 62 or older or disabled and your total income for the year was $100,000 or less. You may exclude up to $20,000 if you are married filing a joint return. If you are single or head of household, you may exclude $15,000. Your exclusion is $10,000 if you are married filing separate returns.
Any unused pension exclusion may be taken as other retirement income exclusion if your income from wages, net profits from business, distributive share of partnership income and net pro rata share of S corporation income totaled $3,000 or less.
You may take an exemption in the amount of $1,000 each for yourself, your spouse, yourself if age 65, your spouse if age 65, yourself if blind or disabled, your spouse if blind or disabled and for any of your dependents attending college. In addition, you may take an exemption of $1,500 for each qualified dependent child and each other dependent.
You may take a deduction for certain medical expenses, qualified Archer medical savings account contributions, health insurance costs for the self-employed, alimony paid, qualified conservation contributions and health enterprise zone deduction for qualified taxpayers.
You may also deduct 100% of property taxes due and paid or $10,000 whichever is less. If you are a tenant, 18% of your rent is considered property taxes paid. If this deduction does not reduce your tax liability by $50 or more ($25 if married filing separate) you should claim the property tax credit instead.