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Division of Taxation

Important Income Tax Changes for Tax Year 2021

Filing Deadline

The filing deadline is Monday, April 18, 2022, for calendar-year taxpayers - matching the due date for the federal Form 1040.

Fiscal year filers must file their returns by the 15th day of the fourth month following the close of the fiscal year. If a due date falls on a Saturday, Sunday, or legal holiday, that return is due on the following business day.

Retirement Income Exclusions

For Tax Year 2021, the income limit for a Retirement Income Exclusion increases to $150,000 See Income Exclusions for more information.

Charitable Contributions

Meals on Wheels in New Jersey Fund - Beginning with the 2021 NJ-1040, you can make a donation to the Meals on Wheels in New Jersey Fund using code 29 on lines 73-75 of the return. Donations would specifically benefit local, independently-run chapters of Meals on Wheels that operate in New Jersey, enabling senior citizens to live healthier lives in their own home.

Earned Income Tax Credit

The New Jersey EITC amount is 40% of the federal Earned Income Tax Credit for 2021. The age requirement for an NJEITC has expanded to those as young as 18 years of age, as well as those over age 65, with no dependents.

Child and Dependent Care Credit

The taxable income amount increased to $150,000 or less to qualify for this credit.

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

For 2021, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $153.85. The maximum employee disability insurance contribution was $649.54. The maximum employee family leave insurance contribution was $386.96. 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 on UI/DI/FLI is available.

Credit for Taxes Paid to Other Jurisdictions

The Philadelphia nonresident wage tax rate for 2021 was 3.5019% (.035019) from January 1 to June 30, and 3.4481% (.034481) from July 1 to December 31.

Military Personnel & Veterans

For Tax Year 2021 and after, combat pay is not taxable in New Jersey. Do not include amounts received as combat zone compensation when reporting your gross income on a New Jersey Income Tax return (Form NJ-1040). For Tax Year 2020 and prior, combat pay is still taxable income. For more information, see Military Personnel & Veterans.

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 2021 Senior Freeze application (Form PTR-1 or PTR-2). Updated information for the program is posted as it becomes available.

Last Updated: Thursday, 12/15/22