As New Jersey residents prepare for the 2023 income tax season, several significant changes have been announced by the Division of Taxation. Here’s a quick rundown of what to expect:
- Extended Filing Deadline: The filing deadline is extended to April 15, 2024, providing taxpayers with additional time to submit their returns.
- Contribution Limits: The maximum contribution for unemployment insurance/workforce development/supplement workforce fund is $174.68. Employee disability insurance contribution is capped at $0, and the employee family leave contribution is set at $94.08.
- Child Tax Credit: Residents with a taxable income of $80,000 or less qualify for a child tax credit of up to $1,000 for each dependent aged five or younger.
- Nonresident Employee Compensation: Nonresident taxpayers may see changes in how their compensation is sourced, particularly if they work out of state for personal convenience rather than employer necessity.
- Shared Responsibility Payment Exemption: Completing the NJ-EZ Enroll Form exempts taxpayers from shared responsibility payments, providing relief for those seeking healthcare coverage.
Staying informed and consulting with tax professionals will be essential for navigating these changes and ensuring a smooth tax season. Remember to file accurately and on time to optimize your financial position.