Date: January 14, 2022Attorney: Martin D. Hauptman

The New Jersey Division of Taxation has listed the following important tax changes that impact 2021 personal income tax returns:

(1) the filing deadline is Monday, April 18, 2022, for calendar year taxpayers which matches the due date for the federal Form 1040; 

(2) the gross income limit for a retirement exclusion is $150,000 (see  State Tax Update, 06/30/2021); 

(3) the New Jersey earned income credit is 40% of the federal earned income credit and eligibility has been expanded to those as young as 18 years old and to taxpayers over age 65, with no dependents; 

(4) the taxable income tax amount increased to $150,000 or less to qualify for an enhanced child and dependent care credit (seeState Tax Update, 12/07/2021); 

(5) individuals with two or more New Jersey employers may qualify for a credit if his or her (a) unemployment insurance/workforce development contributions exceed $153.85; (b) employee disability insurance contributions exceed $649.54; and (c) family leave insurance contribution exceeds $386.96; 

(6) the credit for the nonresident Philadelphia wage tax was 3.5019% from January 1, 2021 to June 30, 2021 and 3.4481% for July 1, 2021 to December 31, 2021; and 

(7) combat pay is not taxable in New Jersey. (N.J. Div. of Taxation, Important Income Tax Changes for Tax Year 2021, 01/05/2022.)

For questions about Tax Law, please contact Martin D. Hauptman