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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