Get NJ NJ-1040 2016

NJ Income Tax Deductions. Federal deductions, such as mortgage interest, employee business expenses, and IRA and Keogh Plan contributions are not allowed on the New Jersey tax return. Full-year residents can only deduct amounts paid during the tax year.

Limit on overall itemized deductions suspended. The income-based phase-out of certain itemized deductions does not apply in 2018. This means that some taxpayers may be able to deduct more of their total itemized deductions if their deductions were limited in the past because their income was above certain levels.

For single filers, the deduction for the 2018 tax year is $12,000. That's nearly double the 2017 value of $6,350. For married taxpayers filing jointly, the standard deduction for the 2018 tax year is $24,000, up from $12,700. Because of the higher standard deduction, fewer people will benefit from itemizing.

Your expenses are $1,250 above the threshold, so that's the amount you can deduct from your taxable income. However, the medical deduction threshold is set to return to 10% of AGI starting with the 2019 tax year.

If you are a single tax payer and your deductions exceed $12,000 you will itemize in 2018, and likewise, if you are married filing joint and your deductions exceed $24,000. If not, you will be taking the standard deduction in 2018. Keep in mind all of these changes are scheduled to sunset in 2025.

The most common expenses that qualify for itemized deductions include: Home mortgage interest. Property, state, and local income taxes. ... Medical expenses.

The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses. For 2019, the additional standard deduction amount for the aged or the blind is $1,300.

You can deduct the portion that exceeds 7.5 percent of your adjusted gross income (AGI) in 2018, but this threshold increases to 10 percent in 2019.

The limitation on Itemized Deductions (known as the Pease limitation ) reduces most itemized deductions by 3 percent of the amount by which adjusted gross income (AGI) exceeds a specified threshold, up to a maximum reduction of 80 percent of itemized deductions.

Starting in 2018, this limit has been eliminated. Here's how the TCJA changes to itemized deductions have altered the tax landscape. Your doctor may have recommended a restricted salt diet, and so has Congress: Under the TCJA, the deduction for all state and local taxes combined cannot exceed $10,000.

The standard deduction for those married filing jointly is now $24,000, up from the prior amount of $12,700. It rises to $12,000 for singles and those married filing separately, up from $6,350. And it increases to $18,000 for those who file head of household, up from $9,350.

The standard deduction for those married filing jointly is now $24,000, up from the prior amount of $12,700. It rises to $12,000 for singles and those married filing separately, up from $6,350. And it increases to $18,000 for those who file head of household, up from $9,350.

NJ Income Tax Deductions. Federal deductions, such as mortgage interest, employee business expenses, and IRA and Keogh Plan contributions are not allowed on the New Jersey tax return. Full-year residents can only deduct amounts paid during the tax year.

For 2018, New Jersey individual income tax rates and income thresholds for single filers and married or civil union filers filing separately are: 1.4% for taxable income of $20,000 or less. 1.75% for taxable income of $20,001-$35,000. 3.5% for taxable income of $35,001-$40,000.

Unlike the federal tax code, which allows taxpayers who itemize to deduct charitable contributions to qualifying nonprofits, New Jersey doesn't allow residents to write off such donations from their state income taxes.