rjs
Level 15
Level 15

Deductions & credits

As the others have said, you can deduct the mortgage interest and property tax on your federal tax return, subject to the normal limitations on itemized deductions.

 

New Jersey does not have itemized deductions like the federal tax return. On the New Jersey tax return there is no deduction for mortgage interest. There is a property tax deduction or credit, but it's only for your primary home, so you would not be eligible for it for 2022 if you never live in the home in 2022.


It's not clear what the status of your current home is. If you are a tenant renting the home from the owner, you may be eligible for a property tax deduction or credit on your New Jersey tax return based on a portion of your rent.