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New Jersey WebFile Help Page 4

Schedule C Worksheet - Net Gains or Income From Rents, Royalties, Patents and Copyrights
Net Gains or Income From Rents, Royalties, Patents and Copyrights can no longer be entered in NJ WebFile due to the creation of the new Schedules NJ-BUS-1 and NJ-BUS-2. More information on these schedules can be found in the NJ Resident Income Tax Return Booklet. If you have income from any of these categories, you will need to file using a different filing method.


Net Gambling Winnings
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.

Enter the total amount of your gambling winnings and gambling losses, if any.

You can subtract gambling or lottery losses from you winnings that occur in the same year. Common types of gambling winnings include:

All casino and track betting; New Jersey Lottery winnings (only individual prizes exceeding $10,000; All out of state lottery winnings regardless of amount.

If you net gambling winnings with gambling losses, you may be required to substantiate the losses used to offset your winnings. Acceptable proff of losses include:

Casino win/loss statement; Daily log or journal of wins and losses; Canceled checks; Losing racetrack pari-mutuel tickets; Losing lottery tickets; and for more information go to Technical Bulletin TB-20(R).

Indicate whether or not you had any New Jersey State income tax withheld from your winnings. Enter the amount of your winnings, as well as federal withholdings (if any) and State withholdings.

Important Notes:
  • NJ WebFile will accept a maximum of six (6) gambling winnings entries. If you have more than this amount you cannot use NJ WebFile.
  • When you have completed entering your Gambling Winnings information click the "Continue" button on the bottom of the screen to return to the NJ -1040 screen.
  • Clicking the "Cancel" button will clear the information on the Gambling Winning Worksheet and return you to the NJ -1040.
  • Clicking the "Calculate" button that will allow you to preview your totals before proceeding.

Alimony and Separate Maintenance Payments Received
You must report the total amount of alimony and separate maintenance payments you received which were required under a decree of divorce or separate maintenance. Do not include payments received for child support.


Other Income
You must report all other income you received from prizes and awards, estates and trusts, scholarships and fellowships, income in respect of a decedent, residential rental value or allowance paid by an employer, or income from other sources.

Amounts Received as Prizes and Awards
A prize won by any person in a raffle, drawing, television or radio quiz show, contest or any other event is taxable and must be included in other income. Any prizes or awards received in goods or services must be included as income at fair market value.

Income in Respect of a Decedent
If you had the right to receive income that the deceased person would have received had he or she lived, and the income was not included on the decedent's final return, you must report the income on your own return when you receive it.

Income from Estates and Trusts
Beneficiaries receiving income from an estate or trust must include the net of the items listed on the Federal K-1 form(s) received. Interest, dividends, capital gains, etc. as listed on the Federal K-1(s) must be adjusted to reflect New Jersey tax law and then netted together before inclusion in "Other" income. Be sure to include income which is not subject to Federal income tax but is subject to New Jersey Gross Income Tax, such as interest from and losses on the disposition of obligations of states and their political subdivisions, other than New Jersey and its political subdivisions, and exclude income and losses not subject to New Jersey tax, such as gains on New Jersey tax-exempt securities.

For tax years beginning on or after January 1, 2004, New Jersey income tax law has uncoupled from certain changes in Federal depreciation and expense deduction limits. The Gross Income Tax Depreciation Adjustment Worksheet GIT-DEP instructions explain the New Jersey adjustments required to determine income reportable in the various net income categories. Worksheet GIT-DEP is available on the Division's Web site (www.state.nj.us/treasury/taxation).

For taxable years beginning after December 31, 2004, New Jersey income tax law has uncoupled from some provisions of the IRC Section 199 deduction. Information regarding the New Jersey limitations and calculations can be found on the Division's web site (www.state.nj.us/treasury/taxation).

If the income from a grantor trust is reportable by or taxable to the grantor for Federal income tax purposes, it is also taxable to the grantor for New Jersey income tax purposes. The grantor must report the interest, dividends, capital gains, business income, partnership income, net pro rata share of S corporation income, etc. in the same categories of income as listed on the Federal or New Jersey K-1(s) and not as income from Estates and Trusts.

Scholarships and Fellowships
Scholarships and fellowship grants are taxable and must be included in "Other Income" unless they satisfy all of the following conditions:
  1. The primary purpose of the grant is to further the recipient's education or training; and
  2. The grant neither represents payments for past, present or future services nor payments for services which are subject to the direction or supervision of the grantor (e.g., a fellowship given in exchange for teaching); and
  3. The grant is not for the benefit of the grantor.

Residential Rental Value or Allowance Paid by Employer
Include in "Other Income" either the rental value of a residence furnished by an employer or the rental allowance paid by an employer to provide a home. The rental value of the residence furnished is excludable and should not be reported provided that:
  1. The lodging is provided on the business premises of the employer; and
  2. The lodging is furnished for the convenience of the employer; and
  3. The employee is required to accept such lodging as a condition of employment.

Other
Also include in "Other Income" the amount of any taxable income for which a place has not been provided elsewhere on the return. Income from sources both legal and illegal is subject to tax.

Important Notes:
  • NJ WebFile will accept a maximum of six (6) entries of other income sources. If you have more than this amount you cannot use NJ WebFile.
  • When you have completed entering your Other Income information click the "Continue" button on the bottom of the screen to return to the NJ -1040 screen.
  • Clicking the "Cancel" button will clear the information on the Other Income Worksheet and return you to the NJ -1040.
  • Clicking the "Calculate" button that will allow you to preview your totals before proceeding.

Special Exclusion
Whether or not you use the maximum pension exclusion, if you are unable to receive Social Security or Railroad Retirement benefits, but would have been eligible for benefits had you fully participated in either program, you may be entitled to an additional exclusion if you are:
  • 62 years of age or older; and
  • Unable to receive Social Security or Railroad Retirement benefits, but who would have been eligible for benefits had you been covered by either program.

You must work a minimum of 40 quarters with Social Security coverage to be eligible to receive Social Security benefits. If you worked the required amount of time but contributed to the Social Security program for less than 40 quarters, you cannot receive Social Security benefits and may be eligible for the Special Exclusion.

NJ WebFile will determine if you qualify for this additional exclusion based on the information you provide and will include the amount on the Other Retirement Income Exclusion line of the Income screen

Note: Since most taxpayers will receive Social Security or Railroad Retirement benefits, relatively few taxpayers are entitled to this Special Exclusion.

The requirements for the Special Exclusion are unrelated to those of the Pension and Other Retirement Income Exclusions. If you qualify for the Special Exclusion, you are entitled to this benefit in addition to the Pension Exclusion and/or Other Retirement Income Exclusion. Individuals who have contributed to the Social Security or Railroad Retirement funds so that they would be eligible to receive Social Security or Railroad Retirement benefits are not eligible for the Special Exclusion, regardless of whether they are actually collecting any benefits. When a joint return is filed, if one spouse/civil union partner is covered by either the Social Security or the Railroad Retirement program, neither spouse/civil union partner is entitled to receive the Special Exclusion.

The amounts of the Special Exclusion are as follows:

Married, filing joint return, Head of Household or Qualifying Widow(er) -- $6,000
Single or Married, filing separate return -- $3,000


Other Retirement Income Exclusion(s)
If you (and/or your spouse/civil union partner) are 62 years of age or older and you did not use the maximum allowable pension exclusion (i.e. your pension, annuity or IRA withdrawal was less than the exclusion amount for your filing status or you did not receive a pension, annuity or IRA withdrawal), you may be eligible to exclude other income. To qualify for the Other Retirement Income Exclusion, you must satisfy all of the following conditions:
  • You must be 62 years of age or older; and
  • Your earned income (total of: wages, net profits from business, distributive share of partnership income and net pro rata share of S corporation income) must be $3,000 or less; and
  • You did not use the Maximum Pension Exclusion amount ($60,000, $45,000 or $30,000, depending on filing status).

NJ WebFile will automatically determine if you qualify for any additional exclusion based on the information you have provided and will calculate the amount of the exclusion. The amount of the Other Retirement Income Exclusion differs from taxpayer to taxpayer, since it is the difference between your actual taxable pension income and the Maximum Pension Exclusion amount allowed for your filing status.

In addition, if you qualify for the Special Exclusion the amount of the exclusion will be included on this line.


Medical Expenses
You may deduct certain medical expenses that you paid during the year for yourself, your spouse/civil union partner and your dependents. However, you cannot deduct expenses for which you were reimbursed. Only expenses in excess of 2% of your income may be deducted. You may also deduct qualified Archer MSA contributions.

Allowable Medical Expenses
Medical expenses means nonreimbursed payments for physicians, dental and other medical fees, prescription eyeglasses and contact lenses, hospital care, nursing care, medicines and drugs, prosthetic devices, X-rays and other diagnostic services conducted by or directed by a physician or dentist. In addition, medical expenses may also include amounts paid for transportation primarily for and essential to medical care and insurance (including amounts paid as premiums under Part B of Title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care. As a general rule, medical expenses allowed for Federal income tax purposes will be allowed for New Jersey income tax purposes.

You may not include:

  1. Contributions you made to an Archer MSA or any amounts paid or disbursed from an Archer MSA that have been excluded from gross income; or
  2. If you are self-employed, any amounts you deducted for health insurance costs.
Archer MSA Contributions
Enter the amount of your qualified Archer MSA contributions from Federal Form 8853. New Jersey follows the Federal rules for this deduction. Your contribution may not exceed 75% of the amount of your annual health plan deductible (65% if you have a self-only plan). Excess contributions that you withdraw before the due date of your tax return are not taxable. However, you must report the earnings associated with the excess contributions you withdraw as wages.

Alimony and Separate Maintenance Payments
Enter the amount of alimony and separate maintenance paid which was required under a decree of divorce or separate maintenance. Do not include payments for child support.


Qualified Conservation Contribution
You may deduct the amount of any contribution you made for conservation purposes of a qualified real property interest in property located in New Jersey. The amount of the deduction is the amount of the contribution allowed as a deduction in computing your taxable income for Federal income tax purposes.

Property Tax Deduction or Credit
Eligible homeowners and tenants who pay property taxes, either directly or through rent, qualify for either a deduction or a refundable credit. Based on the information you provided on the Property Tax Information worksheet on page 2 of the Registration screen, NJ WebFile has determined whether the deduction or credit gives you the greater benefit.


Tax
NJ WebFile will automatically calculate your tax due based on the exact amount of your Taxable Income.


Credit for Taxes Paid to Other Jurisdiction
Schedule NJ-COJ provides taxpayers who are eligible for a property tax benefit with a method for calculating the credit for taxes paid to another jurisdiction both with and without the property tax deduction. If you are eligible to receive a property tax deduction or credit you must complete Schedule NJ-COJ for each jurisdiction for which your are claiming a credit for taxes paid. NJ WebFile will automatically complete Worksheet F (for more information refer to page 40 in your New Jersey resident income tax return booklet) to determine whether you receive a greater benefit from claiming the property tax deduction or taking the property tax credit. If you are claiming a credit for taxes paid to another jurisdiction but you are not eligible for a property tax benefit, NJ WebFile will only complete Column B of Schedule NJ-COJ.

Requirements. As a New Jersey resident, you may be eligible for a tax credit against your New Jersey income tax if you have income from sources outside New Jersey. To qualify, your income must be subject to both the New Jersey income tax and the income or wage tax imposed by another jurisdiction outside of New Jersey for the same year. For this purpose, "jurisdiction" means any state of the United States or political subdivision of such state, including the District of Columbia. No credit is permitted for taxes paid to the U.S. Government, Canada, Puerto Rico, or any foreign country or territory. To receive the credit for taxes paid to another jurisdiction you must fill out Line 1 - Income Actually Taxed by Other Jurisdiction, enter the name of the other jurisdiction, and enter Line 9a - Total Amount of income or wage tax paid to the other jurisdiction. All of the other fields on Schedule NJ-COJ will be filled in by NJ WebFile.

The following fields are required in order to claim a Credit for Taxes Paid to Other Jurisdictions.

Line 1 - Income Actually Taxed by Other Jurisdiction. Enter on Line 1 the name of the taxing jurisdiction in the space provided. Also enter on Line 1 the amount of income you received during the year, which was actually taxed by the other jurisdiction. This means the gross income after adjustments have been made by the other jurisdiction but before personal exemptions and standard and/or other itemized deductions are subtracted. Any income included on Line 1 of Schedule NJ-COJ must also be included on Line 2 since to be eligible for the credit, the income must be taxed by both New Jersey and the other jurisdiction. You should include on Line 1 only amounts properly taxable by the other jurisdiction. Generally, this includes compensation for services performed; income or gains from the ownership or sale of real or personal property in the other jurisdiction. Amounts received as interest, dividends, gains on sale of securities, and other income from intangible personal property such as savings accounts, stocks, bonds and other securities, cannot be included on Line 1 unless you are required to and file a resident return with the other jurisdiction as well as with New Jersey and report the income on both returns.

Do not include on Line 1:
Income which is not subject to New Jersey income tax (even though the item(s) may be subject to tax by the other jurisdiction, e.g., unemployment compensation).

Income which has been excluded or deducted in arriving at the income actually taxed in the other jurisdiction. Items such as IRA and Keogh contributions, employee business expenses, moving expenses, and alimony, if allowed as adjustments to income, would have been deducted from gross income.

Income subject to tax by any foreign country, U.S. possession, or territory.

Income Taxed by More Than One Jurisdiction: Income can only be reported once on Schedule NJ-COJ. When the same income is taxed by one or more jurisdictions within the same state and the amount of income is taxed by each jurisdiction is the same, one credit calculation on Schedule NJ-COJ is done. When you pay tax to two jurisdictions on the same income and the amount of income taxed by each jurisdiction differs, you may be eligible to claim two credits. The first credit is based on the amount of income taxed by both jurisdictions, and the second credit is based only on the difference between the amounts taxed by the two jurisdictions.

For example, gross wages after adjustments of $9,000 were earned in and taxed by a state. However, gross wages of $15,000 were earned in and taxed by a city within that state. The amount of "excess income" is $6,000. In such case, two credit calculations must be made. The first calculation determines the credit allowed on the amount of income taxed by all the jurisdictions ($9,000), the second calculation determines the credit allowed on the $6,000 of "excess income" (the difference between the amounts taxed by the two jurisdictions.)

Note: When NJ WebFile calculates the credit for income taxed by more than one jurisdiction and the actual tax paid to the other jurisdiction is less than the allowable credit, NJ WebFile will automatically enter only the tax paid on the amount of income entered on Line 1.

Income from New York. New Jersey residents working in or earning taxable income from New York are often taxed on an amount less than their actual income earned in New York due to many allowable New York income adjustments. New York determines the rate (% of tax) that will be imposed by including all the income earned as if the taxpayer was a resident. New York then computes the percentage of the New York source income by dividing the New York State income by the Federal income (worldwide income). The percentage is then multiplied by the total calculated tax liability, as if a resident, to determine the actual tax liability of the nonresident. When claiming credit for taxes paid to New York, Line 1, Schedule NJ-COJ of the NJ-1040 should reflect the "New York State Amount" actually taxed by New York from the New York IT-203. Certain adjustments may be necessary to determine the income actually taxed by New York State.

For New Jersey residents subject to the New York State income tax on lump-sum distributions, separate Schedule NJ-COJ Calculations for taxes paid to New York State on first the ordinary income and second on the taxes paid to New York State on the lump-sum distribution should be made, which will then automatically be totaled by NJ WebFile to determine the total credit for taxes paid.

Income From Pennsylvania. As a result of the Reciprocal Personal Income Tax Agreement between the Commonwealth of Pennsylvania and the State of New Jersey, compensation paid to New Jersey residents employed in Pennsylvania is not subject to the Pennsylvania income tax. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other remuneration received for services rendered as an employee.

You may not claim a credit on Schedule NJ-COJ for taxes paid to Pennsylvania on compensation earned in Pennsylvania because these earnings are not subject to tax in Pennsylvania. If Pennsylvania income tax was withheld from your wages, you must file a Pennsylvania return to obtain a refund. To stop the withholding of Pennsylvania income tax, complete a Pennsylvania Employee's Statement of Nonresidence in Pennsylvania and Authorization to Withhold Other State's Income Tax (Pennsylvania Form REV-419) and give it to your employer. You may obtain Form REV-419 from the Pennsylvania Department of Revenue. The Reciprocal Agreement covers compensation only. If you are self-employed or receive other income (for example, gain from the sale of property) which is taxable in both states, you may claim a credit for taxes paid to Pennsylvania on that income by completing Schedule NJ-COJ.

Income From Philadelphia or Other Pennsylvania Municipalities. The Reciprocal Agreement does not apply to the wage or income tax imposed and collected by the City of Philadelphia or any other municipality in Pennsylvania. Therefore, income subject to both New Jersey income tax and any municipal wage or income tax may be included on Line 1, Schedule NJ-COJ.

The amount of income taxable to Philadelphia is sometimes different than the New Jersey State wages figure on the W-2 statement. To determine the proper amount of income to place on Line 1 of Schedule NJ-COJ of the NJ-1040, you must divide the wage tax deducted from your pay by the Philadelphia tax rate as follows:

Philadelphia Wage Tax Paid
-------------------------------------------- = Line 1, Schedule NJ-COJ
Philadelphia Wage Tax Rate

Do not report at Line 1 an amount that is more than the amount reported at Line 14, NJ-1040 as the Philadelphia wages.

Line 9 - Credit for Taxes Paid to Other Jurisdiction. Enter in Box 9a the total amount of income or wage tax paid to the other jurisdiction(s) on the amount of income shown on Line 1. Enter the total tax liability to the other jurisdiction from the other jurisdiction's tax return. If the other jurisdiction does not require the filing of a tax return, Box 9a of Schedule NJ-COJ may be the taxes withheld for the jurisdiction. If you adjusted the income on Line 1 of this Schedule NJ-COJ because you had income taxed by more than one jurisdiction, enter only the tax paid on the adjusted amount shown on this Schedule For each column, NJ WebFile will automatically enter on Line 9 the lesser of Line 8, Allowable Credit, or the amount in Box 9a, amount of income or wage tax paid to the other jurisdiction(s) on the income shown on Line 1, Schedule NJ-COJ.

If you are eligible for a property tax deduction or credit, NJ WebFile will automatically complete Worksheet F. If you completed more than one Schedule NJ-COJ, the total amounts from Line 9, Column B of all Schedule NJ-COJ's will be entered on the Credit for Taxes Paid to Other Jurisdictions line, Form NJ-1040.

For more information on claiming a credit for taxes paid to another jurisdiction, refer to Tax Topic Bulletin GIT-3W, Credit for Taxes Paid to Other Jurisdictions (Wage Income).

NJ WebFile automatically calculates the following line items. The below instructions illustrate how these calculations were made.

Line 2 - Income Subject to Tax by New Jersey. NJ WebFile automatically enters on Line 2 the amount of income reported on the Total Income line, Form NJ 1040.

Line 3 - Maximum Allowable Credit Percentage. NJ WebFile divides Line 1 by Line 2 and enters the percentage on Line 3. Results are carried to seven (7) decimal places, rounding up if the seventh place is 5 or more (i.e., .2412378 becomes 24.1238%). Since Line 1 can never be more than Line 2, the result will be 100% or less. If you are not eligible to claim a property tax deduction or credit, only Column B will be completed by NJ WebFile to determine your credit for taxes paid to other jurisdictions. The total of the amounts from Line 9, Column B of all Schedule NJ-COJ's completed will then be entered on the line for Credit for Income Taxes Paid to Other Jurisdictions, Form NJ-1040.

Line 4 - Taxable Income. For each column, the amount on Line 4 will be your taxable income after deductions and exemptions, Form NJ-1040.

Line 5 - Property Tax and Deduction. If you were a qualified homeowner or tenant during the tax year, you may be eligible for a property tax deduction or property tax credit. Refer to the help screen for "Property Tax Deduction/Credit" to determine if you qualify. If you qualify, the amount entered in Box 5a will be your property taxes (or 18% of rent) due and paid during 2018 on your qualified residence. If your property taxes are $15,000 or more, $15,000 will be entered on Line 5. If the amount of your property taxes (or 18% of rent) due and paid is less than $15,000, your property taxes due (or 18% of rent) and paid will be entered on Line 5.

Married, Filing Separate Return. If your filing status is married, filing separate return and you and your spouse/civil union partner maintain the same principal residence, one-half of the property taxes (or 18% of rent) due and paid will be used in your calculations. If the amount of the property taxes (or 18% of rent) due and paid is $7,500 or more, $7,500 will automatically be entered on Line 5. If the amount of the property taxes (or 18% of rent) due and paid is less than $7,500, that amount will be entered on Line 5 by NJ WebFile. Property Tax Reimbursement Applicants - see Page 2 of NJ WebFile Help for more information.

Multiple Residences, Owners, Units, or Tenants. Verify that the figures you entered on the Taxpayer Information Screen corresponds with the figures you entered on Schedule HR-A.
¨ You lived in more than one qualifying residence during 2018; or
¨ You shared ownership of a principal residence during the year with anyone, other than your spouse/civil union partner; or
¨ Your principal residence during the year consisted of multiple units; or
¨ Anyone other than your spouse/civil union partner occupied and shared rent with you for an apartment or other rental dwelling unit.
If you were a homeowner, the amount from Line 6, Schedule HR-A should match Box 5a, Line 5, Schedule NJ-COJ. If you were a tenant, the amount from Line 12, Schedule HR-A should match the amount in Box 5a, Line 5, Schedule NJ-COJ. If you were both a homeowner and a tenant during the year, the total amounts from Line 6, Schedule HR-A and 18% of the amount from Line 12, Schedule HR-A should match the total in Box 5a, Line 5, Schedule NJ-COJ.

Line 6 - New Jersey Taxable Income. For each column, NJ WebFile subtracts Line 5 from Line 4 and enters the result on Line 6.

Line 7 - Tax on Line 6 Amount. For each column, NJ WebFile enters on Line 7 the amount of tax due on the income calculated on Line 6. If you are not eligible for a property tax benefit, and you are completing only Column B of Schedule NJ-COJ, the amount on Line 7, Column B should be the same as the amount entered on the Tax line under Tax Information, Form NJ-1040.

Line 8 - Allowable Credit. For each column, NJ WebFile multiplies the amount on Line 7 by the percentage on Line 3 and enters the result on Line 8.


Child and Dependent Care Credit
The Child and Dependent Care Credit is available to certain taxpayers who have earned income and paid someone to care for a qualifying person so they can work or look for work.

To qualify, you must be allowed a federal credit for child and dependent care expenses and have NJ Taxable Income of $60,000 or less. You are not eligible for the credit if your filing status is married, filing seperately. For more information see page 36 in the New Jersey Resident Income Tax Return Instruction Booklet.


Gold Star Family Counseling Credit
If you are a mental health care professional who provided counseling through the Gold Star Family Counseling program, go to page 37 in the New Jersey Resident Income Tax Return Instruction Booklet to complete the calculation to determine the amount of your credit.


Use Tax Due on Internet, Mail-Order, or Out-of-State Purchases
When you purchase taxable items or services to be used in New Jersey but do not pay sales tax, you owe use tax. This commonly occurs when purchases are made on the Internet, by phone or mail order, or outside the State from sellers who do not collect New Jersey sales tax. The New Jersey use tax rate is the same as the sales tax rate: For 2018, that rate is 6.625%. If you paid sales tax to another state at a rate less than 6.625% on a purchase that would have been taxed in New Jersey, you owe use tax based on the difference between the two rates. More information on Use Tax can be found in Publication ANJ-7.

Examples:

  • You purchased a computer for $1,500 from a seller located outside of New Jersey and no sales tax was collected. Your use tax liability to New Jersey on this item is $99 ($1,500 x .06625 = $99.38).
  • On a trip to Maine you purchased an antique desk for $4,000 and paid Maine sales tax at the rate of 5%. The difference, $65 (.01625% of the purchase price), is due to New Jersey as use tax.

Individual taxpayers report and remit use tax by either completing and filing the Use Tax Return (Form ST-18) within 20 days after property is brought into New Jersey or by reporting any use tax due on their resident income tax return. If you owe use tax and are remitting it with your resident income tax return, compute the amount of use tax due as follows:

Step 1 - Items or services costing less than $1,000 each. If you know the amount of your purchases in this category, calculate the exact amount of use tax due by multiplying the amount of your purchases by 6.6255% (.06625). OR, if you have incomplete or inaccurate receipts for your purchases, you may use the Estimated Use Tax Chart to estimate the amount of use tax due. The Estimated Use Tax Chart can be found in your resident income tax return booklet.

NOTE: Using the Estimated Use Tax Chart to determine the amount of use tax you report does not preclude the Division of Taxation from auditing your account. New Jersey does have access to records maintained by out-of-State businesses, and if additional tax is due, you may receive an assessment for the amount of use tax owed, plus applicable penalties and interest.

Step 2 - Items or services costing $1,000 or more each. You must calculate the exact amount of use tax due on all purchases in this category.

Step 3 - Total use tax due. Add the amounts determined in steps 1 and 2. Enter the result. If you do not owe use tax, you must enter "0.00".


Penalty for Underpayment of Estimated Tax
To determine the amount of interest for the underpayment of estimated tax, complete Form NJ-2210, Underpayment of Estimated Tax by Individuals, Estates or Trusts. Enter the amount of interest due from line 19, Form NJ-2210. Form NJ-2210 can be downloaded from the Division's website.

 


New Jersey Estimated Payments/Credit from 2017 Tax Return
Indicate whether you have any of the following:
  • Estimated tax payments for 2018
  • Credit applied from your 2017 tax return*
  • Amount, if any, paid to qualify for an extension of time to file

*This is the amount of overpayment that you chose to carry forward from your 2017 New Jersey tax return as a credit towards your income tax liability for 2018. You can verify the amounts of your New Jersey estimated tax payments and credits for the current and/or previous tax year from the Division's Web site. Choose "File Online" and then click on "Gross Income Tax Estimated Payments Statement of Account."


New Jersey Earned Income Tax Credit
All individuals eligible to receive a benefit under the Federal earned income credit program are eligible to receive the New Jersey earned income tax credit. For tax year 2018, the New Jersey earned income tax credit is 37% of the Federal benefit. You must file a New Jersey resident income tax return to receive a New Jersey earned income tax credit, even if you are not required to file a return because your gross income is below the minimum income filing threshold. If you are eligible for a Federal earned income credit but are not required to file Federal Schedule EIC because you do not have any qualifying children, you will still answer "Yes" to the question to enter your Federal earned income credit amount.


Credit for Excess New Jersey UI/HC/WD; DI; FLI
You are entitled to a credit for excess New Jersey unemployment insurance/health care subsidy fund/workforce development partnership fund contributions,disability insurance, and/or Family Leave Insurance contributions withheld by two or more employers. For 2018, the maximum employee unemployment insurance/ health care subsidy fund/workforce development partnership fund contribution was $143 ($143.23 rounded), the maximum employee disability insurance contribution was $64 ($64.03 rounded), and the maximum family leave insurance contribution was $30 ($30.33 rounded). If you had two or more employers and you contributed more than the maximum amount(s), NJ WebFile will automatically calculate the credit(s) based on the information you entered on the W-2 screen.

If any single employer withheld more than the maximum for UI/HC/WD, disability insurance and/or family leave insurance contributions, you must contact the employer who withheld contributions in excess of the legal maximum for a refund.

The amounts of unemployment insurance/health care subsidy fund/workforce development partnership fund contributions, disability insurance withheld and family leave insurance contributions must be reported separately on all W-2 statements. The employer's New Jersey Taxpayer Identification number or approved private plan number must also be shown.

If your income tax credit for excess unemployment insurance/health care subsidy fund/workforce development partnership fund contributions, disability insurance, and/or family leave insurance contributions is denied because all New Jersey Department of Labor requirements are not met, it can only be claimed through the Department of Labor.


Wounded Warrior Caregivers Credit
You are eligible for this credit if you provided care for a relative who is a qualifying armed services member and your gross income was $100,000 or less (married/civil union, filing joint; head of household; qualifying widow(er)) or $50,000 or less (single; married/civil union, filing separate).

A relative is a: Spouse; Parent; Child; Brother; Sister; Grandparent; Grandchild; Aunt; Uncle; First Cousin; Nephew; Niece; Great-grandparent; Great-grandchild; This includes relationships by marriage (e.g. Stepchild, mother-in-law, ect.).

A Qualifying armed service member is a person who:

*Was honorably discharged or released under honorable circumstances by the last day of the tax year, and

*Has a disability arising from active U.S. military service in any war or conflict on or after September 11, 2001, and

*Has either a 100% disability rating or receives individual unemployability benefits (one disability of at least 60% or two disabilities with a combined rating of at least 70% and on of those is at least 40%), and

*Lived with you in New Jersey for at least six months of the tax year.

To calculate the credit, go to page 40 in the New Jersey Resident Income Tax Return Instruction Booklet.


Balance
If you owe tax, you may still make a donation by indicating the amount of your contribution on the corresponding line(s). NJ WebFile will automatically add the amount(s) to your balance due. Make your check for the total amount payable to State of New Jersey - TGI.

You may pay your 2018 New Jersey income taxes by electronic check (e-check) or credit card (Visa, American Express, MasterCard or Discover).

If the amount of tax you owe is more than $400, you may want to increase your estimated payments or contact your employer for Form NJ-W4 to increase your withholdings to avoid future interest assessments. For more information on estimated taxes, request Tax Topic Bulletin GIT-8, Estimating Income Taxes.


Credit to Your 2019 Tax
Enter the amount of your overpayment that you wish to credit to your 2019 tax liability.


Contributions
Whether you have an overpayment or a balance due, you may make a donation to any of the following funds:
  • Endangered Wildlife Fund
  • Children's Trust Fund
  • Vietnam Veterans' Memorial Fund
  • Breast Cancer Research Fund
  • U.S.S. New Jersey Educational Museum Fund
  • Other Designated Contribution (Drug Abuse Education Fund, Korean Veterans' Memorial Fund, Organ and Tissue Donor Awareness Education Fund, NJ-AIDS Services Fund, Literacy Volunteers of America-New Jersey Fund, New Jersey Prostate Cancer Research Fund, World Trade Center Scholarship Fund, New Jersey Veterans Haven Support Fund, Community Food Pantry Fund, Cat and Dog Spay/Neuter Fund, New Jersey Lung Cancer Research Fund, Boys & Girls Clubs in NJ Fund, NJ National Guard State Family Readiness Council Fund, American Red Cross - NJ Fund, New Jersey Girl Scouts Councils in New Jersey Fund, Homeless Veterans Grant Fund, Leukemia & Lymphoma Society – New Jersey Fund, Northern New Jersey Veterans Memorial Cemetery Development Fund, New Jersey Farm to School and School Garden Fund, Local Library Support Fund, ALS Association Support Fund), Fund for the Support of New Jersey Nonprofit Veterans Organizations, New Jersey Yellow Ribbon Fund, Autism Programs Fund, Boy Scouts Councils in New Jersey Fund, NJ Memorials to War Veterans Maintenance Fund, Jersey Fresh Program Fund, or the NJ World War II Veterans' Memorial Fund.

Indicate the amount you want to contribute by checking the appropriate box(es) or entering the specific amount you wish to contribute. The amount you donate will reduce your refund or increase your balance due.

New Jersey - Endangered Wildlife Fund
Help keep NJ's wildlife in our future! Over 84 endangered and threatened species struggle for survival in NJ, the most densely populated state in the nation - and each day brings them closer to extinction. You can help our biologists stem the tide of species and habitat loss. Contributions from compassionate people like you go toward conservation, research, restoration, and education - real dollars that help the Endangered & Nongame Species Program protect imperiled animals such as the bald eagle, bobcat, and bog turtle, plus over 400 other nongame species in NJ. We receive no state-dedicated funding and rely on your support, so this year please "Check Off for Wildlife." Thank you!

Please visit http://www.NJFishandWildlife.com/ensphome.htm for more info. For a free subscription to our newsletter, please write to Conserve Wildlife Foundation, PO Box 400, Trenton, NJ 08625-0400, e-mail: patricia.shapella@dep.state.nj.us, or call 609-292-3707.

New Jersey - Children's Trust Fund… "A Person Who Cares Can Prevent Child Abuse"
Every year thousands of children in New Jersey are neglected and abused. We rely on your support to ensure that community-based programs throughout New Jersey have the resources to prevent these tragedies and strengthen families. 100% of your contribution goes directly to support child abuse prevention programs such as:

  • parent education and support groups
  • home visitation for parents of newborns
  • respite care for children with special needs and their families

You can help children in New Jersey have a safe and healthy childhood.

For more information and/or a copy of the Children's Trust Fund's booklet of current programs please contact: NJ Children's Trust Fund, PO Box 717, Trenton, NJ 08625-0717
Phone: 609-888-7346
Web:www.njchildrenstrustfund.org

New Jersey - Vietnam Veterans' Memorial Fund
"To Remember, To Heal, To Honor"
Your support honors 1,557 New Jerseyans whose names are engraved on the Memorial and helps us teach future generations about this unique time in our nation's history at the Vietnam Era Educational Center.

For more information, write:
New Jersey Vietnam Veterans' Memorial, PO Box 648, Holmdel, NJ 07733

Phone: 1-732-335-0033
Web:http://www.njvvmf.org

New Jersey - Breast Cancer Research Fund
YOUR STATE TAX REFUND TODAY HELPS OUR DAUGHTERS TOMORROW

Join the fight against breast cancer and help New Jersey based researchers find a cure now so our daughters won't have to fight this disease in the future. 100% of your donation supports research relating to the prevention, screening, treatment, and cure of breast cancer. For further information, please contact: The New Jersey Commission on Cancer Research, PO Box 360, Trenton, NJ 08625-0360
Web: http://www.state.nj.us/health/ccr/

Phone: 1-609-292-2204

New Jersey - U.S.S. New Jersey Educational Museum Fund
BATTLESHIP NEW JERSEY

Mission: Support the Battleship New Jersey

Help the continued restoration and preservation of our nation's most decorated battleship -- the Battleship New Jersey Museum and Memorial along the Camden Waterfront. Your contribution goes directly to restoring this historic vessel and expanding her educational programs for all residents of our state to enjoy and learn.

For more information visit http://www.battleshipnewjersey.org
or call 1-866-877-6262

Tours available daily.

Other Designated Contributions
New Jersey - Drug Abuse Education Fund - (01)

L.E.A.D Inc., 5 South Main St., Allentown, NJ 08501
Phone: 609-259-2500
Web: www.leadrugs.org

New Jersey Korean Veterans' Memorial Fund - (02)

Korean War Memorial, c/o Dept. of Military and Veterans
Affairs, Attn: DVS, PO Box 340, Eggert Crossing Road,
Trenton, NJ 08625-0340
Phone: 609-530-6975
Web: http://www.nj.gov/military/korea/

New Jersey - Organ and Tissue Donor Awareness Education Fund - (03)

Web: www.donatelifenj.org

New Jersey - NJ-AIDS Services Fund - (04)

Email: NJAIDSFund@doh.state.nj.us

New Jersey - Literacy Volunteers of America - New Jersey Fund - (05)

Web: literacynj.org
Phone: 1-800-848-0048

New Jersey - New Jersey Prostate Cancer Research Fund - (06)

The New Jersey Commission on Cancer Research
Web: www.nj.gov/health/ccr/
Phone: 1-609-292-2204

New Jersey - World Trade Center Scholarship Fund - (07)

Web: www.njgrants.org

New Jersey - New Jersey Veterans Haven Support Fund - (08)

Phone: 609-530-6941
For more information visit www.state.nj.us/military/vetshaven/index.html.

New Jersey - Community Food Pantry Fund - (09)

Web: http://bitly.com/communityfoodpantryfund

New Jersey - Cat and Dog Spay/Neuter Fund - (10)

Web: http://www.state.nj.us/health/vph/pop-control/

New Jersey - New Jersey Lung Cancer Fund - (11)

New Jersey Commission on Cancer Research
Phone: 1-609-292-2204
Web: www.state.nj.us/health/ccr/

New Jersey - Boys and Girls Clubs in New Jersey Fund - (12)

Web: www.bgcnj.org

New Jersey - NJ National Guard State Family Readiness Council Fund - (13)

Web: www.nationalguardsfrc.org

New Jersey - American Red Cross NJ Fund - (14)

Phone: 1-800-RED CROSS
Web: redcross.org
Twitter: @NJRedCross

New Jersey - Girl Scouts Councils in New Jersey Fund- (15)

Web: http://girlscouts.org/councilfinder

New Jersey - Homeless Veterans Grant Fund - (16)

Web: www.nj.gov/military/veterans/homeless-veterans-gramt-program/
Email: Patty.Richter@dmava.nj.gov

New Jersey - Leukemia & Lymphoma Society - New Jersey - (17)

Leukemia & Lymphoma Society New Jersey Chapter,
14 Commerce Drive, Ste. 301, Cranford, NJ 07016
Phone: 908-956-6600 Fax: 908-956-6601
Web: www.lls.org/nj

New Jersey - Northern New Jersey Veterans Memorial Cemetary Development Fund - (18)

Web: www.nnjveteransmemorialcemetary.org
Phone: 973-896-2460

New Jersey - New Jersey Farm to School and School Garden Fund - (19)

Web: http://bitly.com/njfarmtoschoolfund

New Jersey - Local Library Support Fund - (20)

Web: http://www.njstatelib.org/local-library-support-fund

New Jersey - ALS Association Support Fund - (21)

Greater New York Chapter
Web: www.als-ny.org
Phone: 212-619-1400
Twitter: @ALSofGNY

Greater Philadelphia Chapter
Web: www.alsphiladelphia.org
Phone: 215-643-5434
Twitter: @alsphiladelphia

New Jersey - Fund for the Support of New Jersey Nonprofit Veterans Organizations - (22)

E-mail: Patty.Richter@dmava.nj.gov

New Jersey - New Jersey Yellow Ribbon Fund - (23)

E-mail: Patty.Richter@dmava.nj.gov

New Jersey - Autism Programs Fund - (24)

New Jersey - Boy Scouts Councils in New Jersy Fund - (25)

New Jersey - NJ Memorial to War Veterans Maintenance Fund - (26)

E-Mail: Patty.Richter@dmava.nj.gov

New Jersey - Jersey Fresh Program Fund - (27)

Web: www.FindJerseyFresh.com

New Jersey - NJ World War II Veterans' Memorial Fund - (28)

E-Mail: Patty.Richter@dmava.nj.gov

Refund Due
The Division encourages you to use Direct Deposit. If you are a first time filer, you are required to use Direct Deposit. The Division of Taxation will electronically deposit refunds to taxpayers’ accounts held by a U.S. financial institution, providing:

  • An accurate account number and American Bankers Association (ABA) routing number is supplied; and
  • The financial institution accepts direct deposits for the type of accounts designated

Taxpayers should verify routing and account numbers with their financial institutions. Although a checking account routing number can usually be found on the face of a check, routing numbers for other types of accounts are not always apparent. The NJ Division of Taxation assumes no responsibility for taxpayer or preparer error. Taxpayers should ensure their account and routing information is accurately entered.

Errors could result in different scenarios. For example:

  • If taxpayers omit a digit from the account or routing number of one account and the number does not pass a validation check, the Division of Taxation will mail a check for the entire amount of their refund.
  • If taxpayers incorrectly enter an account or routing number and a designated financial institution rejects and returns the deposits to the Division of Taxation, the Division of Taxation will issue a check for that portion of the refund.
  • If taxpayers incorrectly enter an account or routing number belonging to others and the designated financial institutions accepts the deposits, taxpayers must work directly with the respective financial institution to recover the funds.

Refund Due
Generally, we process returns filed electronically (those filed online using our NJ WebFile service or filed by computer software) faster than returns filed on paper.      

  • Processing of electronic returns typically takes a minimum of 4 weeks.      
  • Processing of paper tax returns typically takes a minimum of 12 weeks.      
  • Returns that require manual processing may take 12 weeks or longer whether the return was filed electronically or on paper.

Check the Status of your Refund
You should only use the Online Refund Status Service if you filed your return at least 4 weeks ago (electronically) or 12 weeks ago (paper).


Payment Due
The balance of tax due need not be paid in full when your return is filed, but it must be paid in full by the original due date of the return. If you owe less than $1, no payment is required. You may make your payment by check or money order, electronic check (e-check), or credit card.

Check or Money Order.
NJ WebFile will calculate your payment due (if appropriate). If you have a payment due, remit the proper amount with the payment voucher, Form NJ-1040-V. Make your check or money order payable to State of New Jersey - TGI. Write your Social Security number on the check or money order. Use Social Security numbers of both husband and wife for a joint return. Please be sure that your Social Security number matches the Social Security number listed first on your 2018 New Jersey resident tax return.

You are not required to submit your payment on the same date as your NJ WebFile transmission, however, your payment must be postmarked by April 15, 2019 to avoid penalty and interest charges. Mail your voucher with payment to:
State of New Jersey
Division of Taxation
PO Box 196
Trenton, NJ 08645-0196

Credit Card.
You may also pay your 2018 New Jersey income taxes or make a payment of estimated tax for 2019 by credit card. Visit the Divisions web site and use a Visa, American Express, MasterCard, or Discover Novus credit card. Do not send in the payment voucher if you pay your taxes by credit card.

Electronic Check (e-check)
You may be able to pay your 2018 New Jersey income taxes or make a payment of estimated tax for 2019 by e-check. When making a payment by e-check, you will be required to enter your bank's routing number and your account number. The payment will be debited from your account within 3-5 business days.

If you did not choose to pay be e-check during your WebFile session, you can still pay be e-check on the Division's Web site . You may also call the Division's Customer Service Center at 609-292-6400. Do not send in the payment voucher if you pay your taxes by e-check.

When using e-check on the Web, you will need your social security number and date of birth to make a payment. Be sure the social security number and date of birth you enter matches the first social security number shown on the form for which you are making your payment.

Note: If you do not enter your social security number and date of birth properly, you will not be able to pay be e-check. To verify your identity the Division will compare the date of birth you provide with the date of birth on file for you with the Social Security Administration.


Time Limit for Assessing Additional Taxes
The Division of Taxation has three years from the date you file your income tax return or the original due date of the return, whichever is later, to send you a bill for additional taxes you owe. There is no time limit if you do not file your tax return, or if you file a false or fraudulent return with the intent to evade tax. The time limit may be extended if:

  • You amended or the IRS adjusted your Federal taxable income or your Federal earned income credit;
  • You amended your New Jersey taxable income;
  • You entered into a written agreement with the Division extending the time to make an assessment;
  • You omit more than 25% of your gross income on your income tax return; or
  • An erroneous refund is made as a result of fraud or misrepresentation by the taxpayer.

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