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Level 1
June 5, 2019
Question

Can I claim rent I paid in New Jersey? I Couldn't find place to enter those details.

  • June 5, 2019
  • 1 reply
  • 14 views
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1 reply

DanielV01
Level 15
June 5, 2019

Yes, but it is not a direct deduction.  New Jersey doesn't list the deduction as a "rent deduction" but rather as a "property tax" deduction.  However, you are allowed to claim a credit on your NJ return if you are paying property taxes through your rent.  This NJ website gives more information:  https://www.state.nj.us/treasury/taxation/njit35.shtml

That website provides that you can either claim a $50 credit (which reduces your tax liability by $50), or you may claim the property tax deduction.  In general, NJ stipulates that 18% of your rent is included as property tax However, there are conditions to this, particularly if you live in a multi-unit building.  There is a link on the website with further instructions to calculate the deduction.  

Once you figure out which method works better for you, look for the Property Tax deduction/credit, which should be in the "Deductions and Credits" section of the NJ state return.

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Level 2
May 2, 2021

i pay around 45K rent and turbotax gave me 8100 property tax deduction for rental.  Is that accurate?

Alumni - Champ
May 2, 2021

Yes.  NJ considers 18 percent of your rent to be for property taxes.