New Jersey offers two tax breaks for renters, letting you take advantage of whichever gives you the most money:
- A property tax deduction of 18% of your rent
- A property tax credit of $50
You can claim either the deduction or the credit when you file your state tax return. It is in the Taxes and Credits section of the NJ return. For more info, see NJ Division of Taxation
Your husband has until 04/15 to make an IRA contribution for tax year 2024, so if he contributes today, that contribution may lower your current tax bill.
How do I enter a 1099-C? You will need to enter the amounts from Box 2 and Box 3 into TurboTax.
From the instructions on Form 1099-C (page 4) - If a creditor has discharged a debt you owed, you are required to include the discharged amount in your income, even if it is less than $600, on the “Other income” line of your Form 1040 or 1040-SR. However, you may not have to include all of the canceled debt in your income. There are exceptions and exclusions, such as bankruptcy and insolvency. See Pub. 4681, available at www.irs.gov/Pub4681, for more details.
If you have received a Form 1099-C because a debt that you owed has been canceled most likely you will need to include this amount as other income on your return. Some canceled debts are not included in your income. You can get the following forms and publications if you think that the following situations might apply to you:
- Debts canceled in bankruptcy, IRS Publication 908, Bankruptcy Tax Guide
- Insolvency, IRS Publication 525, Taxable and Nontaxable Income
- Foreclosure or abandonment of property, IRS Publication 525, Taxable and Nontaxable Income
If a foreclosure or abandonment of property occurred in connection with the cancellation of debt, you may receive a Form 1099-C, Cancellation of Debt or a Form 1099-A, Acquisition or Abandonment of Secured Property.
If the debt canceled was acquisition debt secured by your principal residence (it is acquisition debt if you used the proceeds to buy, build, or substantially improve your main home) you may qualify for Home Mortgage Debt Forgiveness Relief . You must file Form 982, Reduction of Tax Attributes Due to Discharge of indebtedness.
You may also have income or loss because of the acquisition or abandonment. Get IRS Publication 544, Sales and Other Dispositions of Assets for additional information.
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