Hi all,
My wife has income from, and qualifies for the federal Difficulty of Care income tax exclusion. The provider agency has advised us that New Jersey recently extended the DOC exclusion to State income taxes. For 2024 her W-2's show amounts for both NJ state income received as well as state income tax withholding. There was no federal income tax withheld. How should this be handled on our 2024 NJ return? Are the state withholding's
recovered somehow or should the DOC compensation not be included as NJ income on the return? Or is there some other way to handle this? The provider has made the necessary adjustments for future (2025) compensation. Thanks for any advice
