If you’re going to claim itemized deductions, here are the some of the deductions New Jersey allows: If you do not have a child, you must be between 25- and 65-years-old to qualify for this credit. Your eligibility for the New Jersey EITC depends on your filing status, income level, and number of children you have, if any. Like the federal government, New Jersey offers an EITC for low-to-moderate-income workers. In addition to these credits, the Earned Income Tax Credit is likely of most interest to New Jersey taxpayers. Property Tax Credit - Homeowners and tenants can take advantage of this $50 credit.Excess UI/WF/SWF, DI, or FLI - You may be able to claim this credit if you had two or more employers and contributed more than the maximum amounts for unemployment insurance (UI)/workforce development partnership fund (WF)/supplemental workforce fund (SWF) contributions, disability insurance (DI) contributions, and/or family leave insurance (FLI) contributions.Credit for Taxes Paid to Other Jurisdictions - If you paid taxes on the same income to two jurisdictions (not including the federal government, Canada, Puerto Rico, or any other foreign country or territory), you may be eligible for this tax credit. ![]() The maximum amount for this credit is $500 for one child dependent and $1,000 for two or more children or dependents. Child and Dependent Care Tax Credit (CDCTC) - This credit is available for households earning less than $60,000 who are responsible for caring for a child or dependent.While the Child Tax Credit (CTC) is not one of them, New Jersey offers: New Jersey offers several tax credits that can directly lower your tax bill. So, even though you don’t see them listed out on your receipt like sales tax, you’re still paying them. However, they usually wrap them in the sales price of the goods and services. Retailers are responsible for paying these taxes to the state. This fee is slightly lower in certain cities including Atlantic City and Wildwoods where it’s only 1% and 3.15% respectively. If you’re thinking of renting an Airbnb or other short-term rental, you should be aware that there is a 5% occupancy fee that’s now charged for reservations that are less than 89 nights. While this is a small fee in the grand scheme of things, it can add up if you rely on ride-sharing instead of driving. For solo rides, it’s an extra $0.50 and $0.25 for shared rides. If you frequently use ride share services like Lyft and Uber, you should know that they’re subject to an excise tax too. ![]() If you think about it, that’s more than $3.00 extra in taxes every time you fill up. Diesel is slightly higher at $0.35 per gallon. Regular gasoline is subject to an additional $0.31 per gallon. If you drive a lot, you may feel the impact of the gasoline excise tax. This includes cigarettes which are subject to $2.70 in taxes for every pack, an additional $0.10 per milliliter of liquid nicotine (for E-cigs), and $0.75 per ounce for moist snuff. In addition to the statewide sales tax, tobacco products are charged an extra 30% tax on the wholesale price, plus individual sin tax charges. This can ensure that you properly attribute all of your capital gains and losses as well as any related deductions or exemptions you may qualify for. If you have a large number of investments that you sold-off in the last year, it may be to your advantage to work with a tax expert when filing. To determine whether your assets are exempt from the capital gains tax, review Bulletin GIT-5. Certain capital gains are exempt, including those from a New Jersey Qualified Investment Fund, such as U.S. ![]() You must report capital gains or losses in the year you sell the asset. So, to take advantage of generally lower tax rates, it’s recommended that you hold onto your investments for longer. The capital gains tax rate depends on your taxable income and filing status. On the other hand, long-term capital gains are taxed at a rate between 0-20%. This means that short-term capital gains are taxed at the rate for your income tax bracket. Short-term capital gains, those that you held for less than a year, are taxed as ordinary income. To determine whether you’re reporting a capital gain or loss, you subtract the cost basis (the amount you paid) from the sale price of the asset. Some common assets that are subject to the capital gains tax include stocks, bonds, and real estate. Capital gains tax is applied to the profit made off the sale of assets.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |