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Division of Taxation

Important Income Tax Changes for Tax Year 2018

Filing Deadline

The filing deadline is Monday, April 15, 2019 for calendar-year taxpayers – matching the due date for the federal Form 1040

Retirement Income Exclusions

Beginning with tax year 2017, the maximum amount of pension and/or other retirement income that you can exclude from your Gross Income will increase over a four-year period. For Tax Year 2018, you may be eligible to exclude a maximum amount of pension and/or other retirement income of $60,000. See Income Exclusions for more information.

2018 chart

Form NJ-1040NR

We no longer mail copies of the New Jersey Nonresident Return. You may download the form and instructions or file the return electronically.

Form NJ-1040

We have made improvements to our New Jersey Resident Return, Form NJ-1040 instruction booklet .

Note: Worksheets A through J have been renamed within the instruction booklet.

Schedule NJ-COJ

Formerly Schedule A, Schedule NJ-COJ is to be used to calculate your credit for income or wage taxes paid to another jurisdiction in the tax year.

Schedule NJ-DOP

Formerly Schedule B, Schedule NJ-DOP is used to list the net gains or income derived from the disposition of property. This schedule is now full page length to accommodate more transaction detail.

Child and Dependent Care Credit

This is a new credit that may benefit eligible resident taxpayers who are also allowed a federal credit for expenses incurred for the care of one or more qualifying individuals. The New Jersey tax credit is a percentage of the taxpayer’s federal child and dependent care credit. The amount varies according to the amount of the taxpayer’s NJ taxable income. More information can be found on our 2018 Legislation Changes page.

Earned Income Tax Credit

The New Jersey EITC amount increases to 37% of the federal earned income credit for 2018.

The Wounded Warrior Caregivers Credit

This is a new credit for family caregivers of qualifying armed service members with physical disabilities. A qualified family caregiver is eligible for a credit equal to 100 percent of the federal veteran disability compensation, or $675, whichever is less. Schedule NJ-WWC of Form NJ-1040 is used to calculate the credit. See Military Personnel for more information.

Gold Star Family Counseling Credit

This is a new credit for mental health care professionals who provided counseling through the Gold Star Family Counseling program.

Credit for Excess UI/WF/SWF; DI; FLI Withheld

For 2018, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $143.23. The maximum employee disability insurance contribution was $64.03. The maximum employee family leave insurance contribution was $30.33. If you had two or more employers, you may have contributed more than the maximum amount(s). To claim credit on the tax return for excess withholding, complete Form NJ-2450. More information is available on our website.

Credit for Taxes Paid to Other Jurisdictions

The Philadelphia nonresident wage tax rate for 2018 was 3.4654% (.034654) from January 1 to June 30, and 3.4567% (.034567) from July 1 to December 31.

Property Tax Deduction

Qualified homeowners and tenants are eligible for a deduction for property taxes they paid for the calendar year on their New Jersey principal residence. The new law, enacted in July 2018, increases the maximum Property Tax Deduction from $10,000 to $15,000.

More information about the Property Tax Deduction is available on our Property Tax Deduction/Credit page.

Designated Contributions

Five new charitable funds have been added to the list of organizations to which you can make a donation (contribution) on your tax return:

  • Autism Programs Fund
  • Boy Scouts Councils in New Jersey Fund
  • NJ Memorials to War Veterans Maintenance Fund
  • Jersey Fresh Program Fund
  • NJ World War II Veterans’ Memorial Fund

Property Tax Relief Programs

Senior Freeze (Property Tax Reimbursement) The Senior Freeze Program reimburses eligible senior citizens or disabled persons for property tax increases. Eligible residents must file a 2018 Senior Freeze application (Form PTR-1 or PTR-2). Information for 2018 will be posted as it becomes available.

Last Updated: Thursday, 04/22/21