The Internal Revenue Service closed a loophole on Tuesday the Murphy administration and legislative leadership were hoping to use to bypass at $10,000 federal cap on state and local property tax deductions. Lawmakers and Gov. Phil Murphy approved the workaround last year that would let residents to pay their property taxes as “charitable contributions” – which have no caps on the number of tax deductions that could be made on federal tax returns – to the town where they live. Under the IRS’ new rules, if a taxpayer received a benefit from their local government for state or local taxes, they’d have to reduce the amount claimed for charitable deductions on their tax returns. The IRS today made clear it is not interested in fairness for New Jersey’s taxpayers. Instead, it protects President Trump’s politicization of the federal tax code. – Gov. Phil Murphy U.S. President Donald Trump signed the cap as part of the federal tax overhaul … [Read more...] about Feds close SALT tax workaround for NJ, other high-tax states
Nj state income tax
Letter: Taking a new look at NJ state tax incentives
opinion North Jersey Record Published 3:50 PM EDT May 14, 2019 Admittedly I am not an accountant, a business lobbyist, or a political operative. And I am a proponent for creating an environment where companies want to do business in our state, but the New Jersey Economic Development Authority in its present form does not seem to make sense or benefit the people of the state. Does the income tax collected from any new employees as well as the anticipated corporate tax generated exceed the amount spent on the program? If not, how can it have a positive outcome for the state? If New Jersey is essentially paying for these jobs, then doesn’t that make them a type of government job? New Jersey: NJ gets more than expected in taxes, state says that should mean property tax relief Lawsuit: Murphy administration sues DuPont, 3M over toxic firefighting foam News: New lottery agreement with private operator Northstar expected to save NJ up to $100M By one account, New Jersey is … [Read more...] about Letter: Taking a new look at NJ state tax incentives
Murphy may be forced to cut N.J. budget unless there’s a huge surge in income tax payments next month, report says
Without a double-digit uptick in gross income tax collections, New Jersey faces a big shortfall in revenues this fiscal year, according to Moody’s Investors Service.The Wall Street rating agency estimated income taxes, which have been coming in slower than expected, need to grow by a whopping 17 percent through the end of June to avoid a budget deficit. The sales tax will have to pick up the pace, too, Moody’s said. The state budget, which the governor revised last month, assumes total revenues will grow 5.5 percent over last year. But the state Treasury Department reported earlier this month that growth has slowed to 3.7 percent.The Treasury Department said the shortfall is likely the result of taxpayers adapting to a new federal income tax landscape. High earners who customarily made their estimated tax payments in December to take advantage of the state and local tax deduction may be waiting until closer to the April filing deadline now that the deduction is capped at … [Read more...] about Murphy may be forced to cut N.J. budget unless there’s a huge surge in income tax payments next month, report says
Income taxes: When should you hire a CPA to help?
Janna Herron USA TODAY Published 5:00 AM EST Feb 25, 2019 More: Free income tax advice: Call the Asbury Park Press More: Find out how readers used our free tax advice session last year Tax season so far has been full of surprises, as Americans navigate the biggest tax code changes in decades. Most who have a simpler tax return will manage just fine with the tax preparation software available. But others — with more complicated situations — may want to turn to a professional. But it’s not free. Services can run from around $150 to a few hundred dollars, depending on how complex your returns are. These fees are no longer deductible either, an elimination by the new tax law. Still, in the unlikely event that you’re audited by the Internal Revenue Service, a tax professional can deal with the IRS on your behalf and reduce your anxiety. A tax pro can offer other services, such as helping you adjust your paycheck withholdings or advise on other … [Read more...] about Income taxes: When should you hire a CPA to help?
Try again to seal up N.J.-Pa. income tax deal
There's no immediate threat to the reciprocal state income-tax deal that protects middle-class New Jersey residents who work in Pennsylvania, but there's disappointment around these parts that Gov. Phil Murphy has vetoed legislation that would have helped keep the two-state agreement in place. Unfortunately, the bill may have fallen victim to the tit-for-tat, here's-mud-in your-eye, authority battle between Murphy and Senate President Stephen Sweeney, D-Gloucester, who represents lots of those middle-class workers in South Jersey's Third Legislative District. The bill represented a sound principle, in our view. It would have barred a New Jersey governor from pulling the Garden State out of the bi-state agreement unilaterally. Governors of both parties -- but not Murphy, so far -- have proposed doing just that. Under the vetoed measure, such a change would need to be endorsed by the Legislature. Governors keep trying this because statewide revenue numbers favor ending the … [Read more...] about Try again to seal up N.J.-Pa. income tax deal