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Re: NJ Tax Law change today
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Posted on: 5/23 14:07
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Re: NJ Tax Law change today
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Quote:

Dolomiti wrote:
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Adonis wrote:
Seems like Federal tax law is simply becoming compliant with NJ tax law.

Hypocrisy indeed.



The federal tax change reduces the credit for ALL state and local taxes, and it's slashed it from an unlimited amount (non-AMT) to $10,000. They also reduced the tax benefits of mortgages.

NJ has had the same homeowner tax credit for years, not to mention that state taxes are significantly lower than federal. Oh, and Trenton didn't suddenly cut it in a way that targets Republican-leaning counties.


Please. New Jersey doesn't allow you to deduct ANY mortgage interest.

Posted on: 5/7 20:24
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Re: NJ Tax Law change today
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Quote:

Dolomiti wrote:
Quote:

Adonis wrote:
Seems like Federal tax law is simply becoming compliant with NJ tax law.

Hypocrisy indeed.



The federal tax change reduces the credit for ALL state and local taxes, and it's slashed it from an unlimited amount (non-AMT) to $10,000. They also reduced the tax benefits of mortgages.

NJ has had the same homeowner tax credit for years, not to mention that state taxes are significantly lower than federal. Oh, and Trenton didn't suddenly cut it in a way that targets Republican-leaning counties.


Wait! Are you now stating that Republican leaning counties pay less property tax? My gosh you might have stumbled on to something. Actually the law if aimed at anything was aimed at bloated taxes. Would it be terrible if the worse thing that came out of this was some belt tightening by spendy demys?

Posted on: 5/7 9:03
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Re: NJ Tax Law change today
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Quote:

Adonis wrote:
Seems like Federal tax law is simply becoming compliant with NJ tax law.

Hypocrisy indeed.



The federal tax change reduces the credit for ALL state and local taxes, and it's slashed it from an unlimited amount (non-AMT) to $10,000. They also reduced the tax benefits of mortgages.

NJ has had the same homeowner tax credit for years, not to mention that state taxes are significantly lower than federal. Oh, and Trenton didn't suddenly cut it in a way that targets Republican-leaning counties.

Posted on: 5/7 6:59
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Re: NJ Tax Law change today
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OK, I sit corrected. Thanks, and hipocricy noted.

Posted on: 5/6 17:02
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Re: NJ Tax Law change today
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From State of NJ Division of taxation:

'Homeowners and tenants who pay property taxes, either directly or through rent, on a principal residence in New Jersey may qualify for either a deduction or a refundable credit.

The property tax deduction reduces your taxable income. The amount of the benefit depends on the amount of your taxable income, the amount of your property taxes or rent, and your filing status. You may be able to deduct up to 100% of your property taxes or $10,000, whichever is less. For tenants, 18% of rent paid during the year is considered property taxes paid.

The property tax credit reduces your tax due because it is subtracted directly from your tax liability. The benefit is a refundable credit of $50.

You can claim only one of these benefits on your tax return. If you qualify (see Eligibility Requirements), follow the instructions in the New Jersey Resident Income Tax return (Form NJ-1040 1.06 mb) to determine if the credit or deduction will give you the greater benefit. If you are using NJ WebFile, the program will determine the greater benefit for you."

Seems like Federal tax law is simply becoming compliant with NJ tax law.

Hypocrisy indeed.

Posted on: 5/6 14:14
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Re: NJ Tax Law change today
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135,

Maybe you know something I don't and I'm always happy to learn. I thought this was a Federal Cap and you are saying this is (or also is) a NJ State deduction cap. This is the first I'd heard about it being a state cap. I'll reach out to some tax pros I know next week but if anyone else here knows the definitive answer, please chime in-

Posted on: 5/5 11:49
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Re: NJ Tax Law change today
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Quote:

jcneighbor wrote:
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135jc wrote:
I would love to see this fly but come on! Seriously he calls it divisive and wrong but Nj still caps the deduction at 10k. Really?


The $10k is the new Federal cap on deductions, and NJ is trying to find a way around that. Sure would be nice to still be able to deduct 90% of my taxes above $10k by treating it as a documented "charitable contribution" but my guess is that it's in for a tough legal fight. If it flies there will be another 10+ States all doing the same.


Nj caps the deduction for state income tax at 10k. That is the hypocrisy

Posted on: 5/5 9:06
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Re: NJ Tax Law change today
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So the states in essence are legislating federal tax code by defining or creating charitable deductions that do not exist?



Quote:

jcneighbor wrote:
Quote:

135jc wrote:
I would love to see this fly but come on! Seriously he calls it divisive and wrong but Nj still caps the deduction at 10k. Really?


The $10k is the new Federal cap on deductions, and NJ is trying to find a way around that. Sure would be nice to still be able to deduct 90% of my taxes above $10k by treating it as a documented "charitable contribution" but my guess is that it's in for a tough legal fight. If it flies there will be another 10+ States all doing the same.

Posted on: 5/4 20:57
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Re: NJ Tax Law change today
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Quote:

135jc wrote:
I would love to see this fly but come on! Seriously he calls it divisive and wrong but Nj still caps the deduction at 10k. Really?


The $10k is the new Federal cap on deductions, and NJ is trying to find a way around that. Sure would be nice to still be able to deduct 90% of my taxes above $10k by treating it as a documented "charitable contribution" but my guess is that it's in for a tough legal fight. If it flies there will be another 10+ States all doing the same.

Posted on: 5/4 16:31
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Re: NJ Tax Law change today
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I would love to see this fly but come on! Seriously he calls it divisive and wrong but Nj still caps the deduction at 10k. Really?

Posted on: 5/4 16:20
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Re: NJ Tax Law change today
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I pick and choose the charities I give to, so is the state giving me that option?

Posted on: 5/4 16:17
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NJ Tax Law change today
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Just saw this and passing it along. I'm not getting my hope too high on this because you HAVE to pay your taxes which, by strict definition, means it cannot be treated as a charitable contribution...

"New Jersey Gov. Phil Murphy signed a law Friday that will allow homeowners in the state to declare property taxes as charitable donations. The state law, which had broad bipartisan support in the state, was in response to the tax-law changes passed late last year by congressional Republicans, which capped the state and local tax deductions in federal filings at $10,000. Governors in higher-tax, higher-property-value states, most of whom are Democrats, had vowed to fight the law by coming up with workarounds like the one adopted in New Jersey. At the time, New York Gov. Andrew Cuomo called the tax law "economic civil war." On Friday, Murphy, also a Democrat, said of the federal legislation, "It is divisive, it is wrong, and we will continue to fight." In fact, many legal and tax analysts believe New Jersey will have to fight the IRS in court after taking this step. The law will allow property owners to donate up to 90% of their tax bill to charitable funds set up by municipalities in exchange for tax credits."

Posted on: 5/4 15:39
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