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Date of Birth Replaces PIN
The Division of Taxation no longer assigns Personal Identification Numbers (PINs) for individuals who are filing their tax returns or making payments electronically. Instead, taxpayers will use their date of birth when using NJ TeleFile or NJ Web File or when paying their income taxes by electronic check (e-check). Taxpayers may also be asked to enter their last name.
Forms Can Be Printed and Filed
The versions of Forms NJ-1040, NJ-1040EZ, HR-1040, and NJ-1040-ES that are available on the Division of Taxation's Web site can now be printed and used for filing. The forms are also available from NJ TaxFax by calling 609-826-4500 from a fax machine's phone. Previously, only original copies of these forms could be filed.
Nonresident Servicepersons Filing Form NJ-1040NR
Recent Federal legislation (Servicemembers Civil Relief Act, P.L. No. 108-189, signed into law on December 19, 2003) prohibits a state from considering military income when determining the tax rate to be imposed against other income earned in that state by a nonresident serviceperson or spouse. As a result, when completing a New Jersey nonresident return, Form NJ-1040NR, nonresident servicepersons should not report their military pay on the wages line in either Column A (Amount of gross income everywhere) or Column B (Amount from New Jersey sources) on Form NJ-1040NR.
Retirement Income Exclusions
Phase-In Complete. The maximum amount of pension and/or other retirement income that may be excluded from gross income was increased over a four-year period, which began in 2000. Exclusion amounts for 2003 and thereafter are $20,000 (filing status married, filing joint return), $10,000 (filing status married, filing separate return), and $15,000 (filing status single, head of household, or qualifying widow(er)).
Homestead Rebate Amount
The maximum rebate amount for tax year 2003 for eligible homeowners and tenants who are 65 years of age or older or disabled is expected to be $775, but is subject to change.
New Jersey Earned Income Tax Credit
Phase-In Complete. The credit was phased in over a four-year period, which began in 2000. For tax year 2003 and thereafter, the amount of the New Jersey credit will be equal to 20% of the applicant's Federal earned income credit. To receive the credit, eligible residents must file a New Jersey income tax return and complete the New Jersey Earned Income Tax Credit Schedule portion of the tax return.
The allowable exemptions for NJ TeleFile have been expanded. Taxpayers can now use NJ TeleFile if they are eligible to claim the exemption for "other" dependents. Previously, TeleFilers were limited to the exemptions for dependent children.
Some filers will be required to submit copies of W-2s before their refund will be issued. Such taxpayers will receive instructions during their TeleFile call.
Credit for Taxes Paid to Other Jurisdictions
The Philadelphia nonresident wage tax rate for 2003 is .039127 from January 1 to June 30, 2003, and .038801 from July 1 to December 31, 2003.
In addition to the charitable funds listed on the return, taxpayers may designate a contribution to one of six other funds. The new fund that has been added for 2003 is: New Jersey Prostate Cancer Research Fund (06).
Property Tax Reimbursement
The Property Tax Reimbursement (PTR) Program reimburses senior citizens or disabled persons for property tax increases. Eligible residents must file a 2003 Property Tax Reimbursement Application (Form PTR-1 or PTR-2) by June 1, 2004.
Income Limits. For residents applying for reimbursements for tax year 2003, total annual income must be less than:
For 2002: $39,475 if single, or $48,404 (combined income) if married, and
For 2003: $40,028 if single, or $49,082 (combined income) if married.
Proof of Age, Disability Required. Those filing reimbursement applications for the first time on Form PTR-1 must submit proof of age or disability. To qualify for a 2003 reimbursement, an applicant must have been 65 years of age or older, or receiving Federal Social Security disability benefits, as of December 31, 2002. (If receiving Federal Social Security disability, applicant must have continued to receive benefits through December 31, 2003.)
NOTE: Benefits available under this program may be affected by State budgetary constraints. Please check our Web site or call 1-800-323-4400 for updated information on benefit amounts and payment information.