.
The NJ Division of Taxation website has an excellent “2009 Income Tax Info” page with links to all kinds of resources. I will say this for the NJDOT – however incompetent it may be in other areas, it has a great, and extremely useful, website.
Here is a review of the changes to NJ tax law for 2009, as reported on the website (any highlights are mine) -
+ The New Jersey gross income tax rates for tax year 2009 increased to 8% on income over $400,000 but not over $500,000, 10.25% on income over $500,000 but not over $1,000,000, and 10.75% for income over $1,000,000. This is a one-year increase. Tax rates are expected to revert to 2008 rates on January 1, 2010. However, considering the mucking fess the state finances are in, don’t count on it.
+ Homeowners under 65 years of age and not blind or disabled whose New Jersey gross income is more than $250,000 are not eligible for the property tax deduction. In addition, for homeowners under 65 years of age and not blind or disabled whose New Jersey gross income is over $150,000 but not over $250,000, the maximum deduction is limited to $5,000.
+ New Jersey Lottery winnings from prize amounts exceeding $10,000 are taxable for New Jersey gross income tax purposes. The individual prize amount, not the total amount of New Jersey Lottery winnings over the year, determines taxability. So if you had three separate NJ Lottery wins in 2009 - $5,000, $4,000, and $1,700 - that totalled $10,700 you do not have to claim the $10,700 as NJ taxable income. But if you had three wins of $10,500, $100, and $100 you would have to claim $10,500 as income. As usual, taxpayers may deduct gambling losses from their winnings that occurred during the same year; however NJ Lottery losses can now be used to offset other gambling winnings.
+ The amount of the NJ Earned Income Tax Credit will be equal to 25% of the applicant’s Federal earned income tax credit.
There is no major change to the format, layout or content of the 2009 NJ-1040, with the following minor exceptions.
+ Taxpayers must indicate at Line 36b, Form NJ-1040, if they were a homeowner, tenant, or both homeowner and tenant during the year.
+ Spouses/CU partners who file separate tax returns using the filing status “Married/CU Partner, filing separate return” must fill in the oval at Line 37, Form NJ-1040, if they both occupy the same principal residence.
+ Two new charts have been added to the tax return instructions to help taxpayers complete Schedule 1.
As usual, tenants apply for the NJ Homestead Rebate on Form TR-1040, which is a part of the NJ-1040 filing. As we know, under the terms of the NJ State budget, no rebates were issued to tenants who were under age 65 and not disabled on December 31, 2008. While we will not know for sure until the budget is passed by the end of June (hopefully), I expect this will be the same for those under age 65 and not disabled on December 31, 2009. But we tenants still have to complete the application - just in case.
Again, homeowners must wait for a separate application to be mailed out in May. God, and the cafones in Trenton, only knows why homeowners cannot also file an application as part of the NJ-1040 filing.
There does not appear to be any changes to the NJWebFile system. Once again first time filers will be required to use direct deposit if due a refund. Taxpayers with net profits (or loss) from business, distributive share of partnership income (or loss), and/or pro rata share of S corporation income still cannot use NJWebFile and the number of “transactions” that can be entered in certain categories of income remains limited.
Considering the FUs on 2008 balance due NJ-1040s submitted via NJWebFile, I will file all my 2009 NJ-1040s with a balance due manually, requesting clients to sign OPT-OUT forms.
FYI - The Philadelphia nonresident wage tax rate for 2009 is .035 from January 1 to June 30, 2009, and .034997 from July 1 to December 31, 2009.
TAFN
The NJ Division of Taxation website has an excellent “2009 Income Tax Info” page with links to all kinds of resources. I will say this for the NJDOT – however incompetent it may be in other areas, it has a great, and extremely useful, website.
Here is a review of the changes to NJ tax law for 2009, as reported on the website (any highlights are mine) -
+ The New Jersey gross income tax rates for tax year 2009 increased to 8% on income over $400,000 but not over $500,000, 10.25% on income over $500,000 but not over $1,000,000, and 10.75% for income over $1,000,000. This is a one-year increase. Tax rates are expected to revert to 2008 rates on January 1, 2010. However, considering the mucking fess the state finances are in, don’t count on it.
+ Homeowners under 65 years of age and not blind or disabled whose New Jersey gross income is more than $250,000 are not eligible for the property tax deduction. In addition, for homeowners under 65 years of age and not blind or disabled whose New Jersey gross income is over $150,000 but not over $250,000, the maximum deduction is limited to $5,000.
+ New Jersey Lottery winnings from prize amounts exceeding $10,000 are taxable for New Jersey gross income tax purposes. The individual prize amount, not the total amount of New Jersey Lottery winnings over the year, determines taxability. So if you had three separate NJ Lottery wins in 2009 - $5,000, $4,000, and $1,700 - that totalled $10,700 you do not have to claim the $10,700 as NJ taxable income. But if you had three wins of $10,500, $100, and $100 you would have to claim $10,500 as income. As usual, taxpayers may deduct gambling losses from their winnings that occurred during the same year; however NJ Lottery losses can now be used to offset other gambling winnings.
+ The amount of the NJ Earned Income Tax Credit will be equal to 25% of the applicant’s Federal earned income tax credit.
There is no major change to the format, layout or content of the 2009 NJ-1040, with the following minor exceptions.
+ Taxpayers must indicate at Line 36b, Form NJ-1040, if they were a homeowner, tenant, or both homeowner and tenant during the year.
+ Spouses/CU partners who file separate tax returns using the filing status “Married/CU Partner, filing separate return” must fill in the oval at Line 37, Form NJ-1040, if they both occupy the same principal residence.
+ Two new charts have been added to the tax return instructions to help taxpayers complete Schedule 1.
As usual, tenants apply for the NJ Homestead Rebate on Form TR-1040, which is a part of the NJ-1040 filing. As we know, under the terms of the NJ State budget, no rebates were issued to tenants who were under age 65 and not disabled on December 31, 2008. While we will not know for sure until the budget is passed by the end of June (hopefully), I expect this will be the same for those under age 65 and not disabled on December 31, 2009. But we tenants still have to complete the application - just in case.
Again, homeowners must wait for a separate application to be mailed out in May. God, and the cafones in Trenton, only knows why homeowners cannot also file an application as part of the NJ-1040 filing.
There does not appear to be any changes to the NJWebFile system. Once again first time filers will be required to use direct deposit if due a refund. Taxpayers with net profits (or loss) from business, distributive share of partnership income (or loss), and/or pro rata share of S corporation income still cannot use NJWebFile and the number of “transactions” that can be entered in certain categories of income remains limited.
Considering the FUs on 2008 balance due NJ-1040s submitted via NJWebFile, I will file all my 2009 NJ-1040s with a balance due manually, requesting clients to sign OPT-OUT forms.
FYI - The Philadelphia nonresident wage tax rate for 2009 is .035 from January 1 to June 30, 2009, and .034997 from July 1 to December 31, 2009.
TAFN
