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Level 5
posted Jun 4, 2019 2:21:49 PM

Can someone confirm for me that union dues and uniform upkeep can no longer be used for an itemized deduction on NJ State taxes?

And also, is it now true that if you don't itemize your federal return, you now MUST take the standard deduction for the NJ state taxes as well?

Thank You,

Lee

0 2 1800
1 Best answer
Intuit Alumni
Jun 4, 2019 2:21:51 PM

There is no standard or itemized deduction for the New Jersey tax return. 


"In filing your New Jersey state income tax return, you are required to use the same filing status used on your federal tax return. There are a few circumstances that allow you to do otherwise, but generally the same filing status must be used on both returns.


Since no standard deduction or itemized deductions are allowed, the deduction method used on your federal return does not effect your state tax return.

Even though the standard or itemized deductions are not allowed, New Jersey offers tax relief in the form of the following tax credits:

  • credit for taxes paid to another jurisdiction,
  • property tax credit,
  • credit from the previous year's return,
  • New Jersey earned income credit (17.5% of federal EIC credit)
  • credit for excess unemployment/disability contributions."

"Federal deductions, such as mortgage interest, employee business expenses, and IRA and Keogh Plan contributions are not allowed on the New Jersey tax return."

http://www.taxesindepth.com/state-taxes-New-Jersey.html

https://www.state.nj.us/treasury/taxation/prntgit.shtml

2 Replies
Intuit Alumni
Jun 4, 2019 2:21:51 PM

There is no standard or itemized deduction for the New Jersey tax return. 


"In filing your New Jersey state income tax return, you are required to use the same filing status used on your federal tax return. There are a few circumstances that allow you to do otherwise, but generally the same filing status must be used on both returns.


Since no standard deduction or itemized deductions are allowed, the deduction method used on your federal return does not effect your state tax return.

Even though the standard or itemized deductions are not allowed, New Jersey offers tax relief in the form of the following tax credits:

  • credit for taxes paid to another jurisdiction,
  • property tax credit,
  • credit from the previous year's return,
  • New Jersey earned income credit (17.5% of federal EIC credit)
  • credit for excess unemployment/disability contributions."

"Federal deductions, such as mortgage interest, employee business expenses, and IRA and Keogh Plan contributions are not allowed on the New Jersey tax return."

http://www.taxesindepth.com/state-taxes-New-Jersey.html

https://www.state.nj.us/treasury/taxation/prntgit.shtml

Level 5
Jun 4, 2019 2:21:52 PM

GREAT answer!  Thanks so much for the update on the current laws.