Property Tax Deduction/Credit
Homeowners applying for the property tax deduction/credit must enter new information on Lines 37b and 37c of the 2014 resident return, Form NJ-1040. These residents must report the following information about the principal residence they owned and occupied on December 31, 2014: block number, lot number, and qualifier (condominiums only) for the property, and county/municipality code for the location of that residence. Those who were not homeowners on December 31 must provide information for the last home they owned and occupied in New Jersey during 2014. In addition, homeowners must fill in the oval on Line 37c if they completed Worksheet F-1, which can be found in the instructions for Form NJ-1040, to calculate the total property taxes paid amount for Line 37a.
Credit for Excess UI/WF/SWF; DI; FLI Withheld
For 2014, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $133.88, the maximum employee disability insurance contribution was $119.70, and the maximum employee family leave insurance contribution was $31.50. 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 2014 was 3.495% (.03495) from January 1 to June 30, 2014, and 3.4915% (.034915) from July 1 to December 31, 2014.
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 2014, the percentage used to calculate the Alternative Business Calculation Adjustment on Schedule NJ-BUS-2 is 30 percent, up from 20 percent in 2013. 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.
E-Filing Opt Out
If your tax preparer is required to file all returns electronically, you can still choose to file by paper as long as you fill out Form NJ-1040-O, E-File Opt-Out Request Form. Beginning this year, you must include the form with your return when you file, and your preparer must indicate that it is enclosed by filling in the oval in the section where he or she signs your return.
Homestead Benefit Program
Homeowners. New Jersey residents who owned and occupied a home in New Jersey that was their principal residence on October 1, 2014, may be eligible for a homestead benefit provided the 2014 property taxes were paid and they meet certain income limits. The homestead benefit application for homeowners is not included in the NJ-1040 booklet.
Tenants. There is no tenant rebate application for 2014.
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 2014 Property Tax Reimbursement Application (Form PTR-1 or PTR-2) by the extended due date of October 15, 2015. The original due date was June 1, 2015.
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 2014 will be posted on the Division’s website as it becomes available.