New Jersey Tax Breaks

Shoreline scene with an old rusty anchor on wet sand. 3d illustration.

There are several positive tax changes that NJ has implemented this year regarding education, child tax credits, and property tax relief.

Education: A deduction of up to $10,000 of NJBest contributions, and a deduction of up to $2,500 of principal and interest paid on student loans if your gross income is $200,000 or less. You can also deduct up to $10,000 of tuition to a New Jersey institution of higher education.

Child Tax Credits: A refundable child tax credit of up to $500 for each dependent child aged 5 or younger. Your taxable income has to be $80,000 or less.

Child and Dependent Care Credit: Similar to the Federal credit and the New Jersey credit is a percentage of your federal child and dependent care credit. Your New Jersey taxable income must be $150,000 or less.

Property Tax Relief: You are eligible for the ANCHOR benefit if your NJ gross income was $250,000 or less during the year 2019. The application can be completed online and you should have received it in the mail. The deadline to file is December 30, 2022.

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