Why NJ does not consider carryover capital loss from the prior year's?

[angel888]

I had quite some capital loss in prior years, while I have some small gain from selling stock in 2021.  While Fed return considers carryover loss (& short-term/long term gain/loss, as well as no tax if the capital gain is under ~$40k), that writes off the small gain that I earnt last year (2021), however, NJ does not seem to consider carryover nor long-term/short-term gain, and nor tax bracket?? 

Does every penny gained from selling stock, despite it's a short-term or long term, while resident in NJ will be taxed at 10.75% this high rate (higher than regular income tax by NJ)??  How about every penny lost - it is not carryover to next year as Fed does?! 

[Mike9241 · Accepted solution]

New Jersey does not permit taxpayers to deduct losses against income from other categories, such as wages, pensions or interest.” Additionally, unlike with federal returns, excess capital losses are not permitted to be carried forward.

[angel888]

oooh, thank you so much for this!!  I thought I did something wrong or missed steps.  Now I realise that in the future, I should try to balance gain and loss in the same year since NJ does not consider anything that Fed does.  And worse, NJ taxes capital gain even much higher than regular income tax! 

[fanfare]

@angel888 

New Jersey does not have a capital gains tax.

Just high taxes.

I don't know where you got that idea.

Actually I do. If you had a big stock gain you'll pay at the top rate on that.

But you said you had a small gain in 2021.

As the Gov. Murphy said, If you don't like high taxes, maybe NJ is not the state for you.

[angel888]

@fanfare 

I googled and found this, that NJ has 10.7% capital gain tax...., even higher than the regular income tax... 

Capital Gains Tax by State 2022 (worldpopulationreview.com) 

HAHA, it seems that NJ is really not right for me and probably for majority of people.

[maglib]

If you go to FORMS and look at the NYS Information Sheet you will see if you set up estimated taxes to be withdrawn.  It is under part IX.