Earned Income Tax Credit
The New Jersey Earned Income Tax Credit (NJEITC) amount increases to 30% of the applicant’s Federal earned income tax credit for tax year 2015 and after.
The filing deadline is April 18, 2016, for calendar year taxpayers, the same day the Federal Form 1040 is due. The due date is April 18 instead of April 15 because of the Emancipation Day holiday in the District of Columbia.
Credit for Excess UI/WF/SWF; DI; FLI Withheld
For 2015, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $136.00, the maximum employee disability insurance contribution was $80.00, and the maximum employee family leave insurance contribution was $28.80. If you had two or more employers, you may have contributed more than the maximum amount(s). You must complete Form NJ-2450 to claim credit on your New Jersey tax return for the excess withheld.
Credit for Taxes Paid to Other Jurisdictions
The Philadelphia nonresident wage tax rate for 2015 was 3.4915% (.034915) from January 1 to June 30, 2015, and 3.4828% (.034828) from July 1 to December 31, 2015.
Alternative Business Calculation Adjustment
If you have losses in certain business-related categories of income, you may be able to use those losses to calculate an adjustment to your taxable income. In addition, you can carry forward unused losses in those categories for 20 years to calculate future adjustments. For tax year 2015, the percentage used to calculate the Alternative Business Calculation Adjustment on Schedule NJ-BUS-2 is 40 percent, up from 30 percent in 2014. The percentage is being phased in over a five-year period and will reach a maximum of 50 percent for tax year 2016 and after.
Six new funds have been added to the list of organizations to which you can contribute on the New Jersey tax return. To donate to the new funds, you must specify the “code number” at the “Other Designated Contribution” line. The new funds are:
Property Tax Relief Programs
Homestead Benefit Program
Homeowners. New Jersey residents who owned and occupied a home in New Jersey that was their principal residence on October 1, 2015, may be eligible for a homestead benefit provided the 2015 property taxes were paid and they meet certain income limits. The homestead benefit application for homeowners is not included in the NJ-1040 booklet. Information about the 2015 homestead benefit will be posted as it becomes available.
Tenants. There is no tenant rebate application for 2015.
Note: Eligibility requirements, including income limits, and benefits available under this program are subject to change.
Property Tax Reimbursement (Senior Freeze)
The Senior Freeze (Property Tax Reimbursement) Program reimburses eligible senior citizens or disabled persons for property tax increases. Eligible residents must file a 2015 Property Tax Reimbursement Application (Form PTR-1 or PTR-2).
Income Limits. With very few exceptions, all income received during the year, including income which is not required to be reported on Form NJ-1040, must be taken into account to determine eligibility for the property tax reimbursement. The limits apply regardless of marital/civil union status. However, if an applicant’s status is married/CU couple, combined income of both spouses/CU partners must be reported.
Note: Eligibility requirements, including income limits, and benefits available under this program are subject to change. Information for 2015 will be posted on the Division’s website as it becomes available.