New Jersey State Tax Help

What if I didn't receive an NJK-1?

If the partnership of which you're a part was located in New Jersey, you should have been sent an NJK-1 (New Jersey's own version of the federal K-1). If you didn't receive one and don't expect to, enter nothing on this screen and you'll be taken to another screen to enter any required New Jersey adjustments.

You won't be able to e-file your state return unless you receive an NJK-1 and enter the required information, although you may still be able to e-file your federal return without the NJK-1.

What am I adding to my K-1 with this screen?

When you click Add, we'll take you to a page in which you can enter any necessary adjustments required by New Jersey from your federal K-1 information. After you've added an adjustments record, you can later go back and edit or delete it. Be advised that even if there are no adjustments to make between your K-1 and your New Jersey record, you'll still need to add an adjustments record to be sure that you viewed all possible adjustments.

If you received an NJK-1, do NOT enter anything in this screen (or delete all records if you've already entered information) and go back to the prior screen to enter your NJK-1 information. You won't be able to e-file your state return unless you have an NJK-1 and have entered the required information.

What is Income in Respect of a Decedent?

If you had the right to receive income that a deceased person would have received had he or she lived, and the income wasn't included on the decedent's final return, you must report the income on your own return when you receive it.

If you're e-filing your state return, New Jersey requires that you enter not only the amount of the addition to your income, but also the decedent's name and Social Security number.

What scholarships or fellowships are taxable?

The definition of what is taxable is different for federal and New Jersey purposes, so make sure that you only enter an amount here if it's taxable to New Jersey.

Scholarships and fellowship grants are taxable in New Jersey and must be included on your state tax return unless they satisfy ALL the following conditions:
  1. The primary purpose of the grant is to further the recipient's education or training.
  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).
  3. The grant is not for the benefit of the grantor.

Which medical expenses can I deduct?

You may deduct certain medical expenses that you paid during the year for yourself, your spouse or domestic partner, and your dependents. However, you can't 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 and certain health insurance costs if you are self-employed. We will calculate the total of your deductions for you. Simply enter the total amount of qualifying medical expenses. Please note that amounts you paid for health insurance premiums do NOT qualify.

Allowable Medical Expenses
Medical expenses means non-reimbursed 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.

Do I qualify for the Health Enterprise Deduction?

Eligible taxpayers engaged in providing "primary care" medical and/or dental services at a qualified practice located in or within five miles of a designated Health Enterprise Zone (HEZ) may enter the amount of their HEZ deduction in the space indicated.

Partners and S corporation shareholders of a qualified practice may enter the HEZ deduction amount listed on Schedule NJK-1. Sole proprietors must calculate the amount of their HEZ deduction. For information on eligibility requirements and how to calculate the HEZ deduction, see Technical Bulletin TB-56, Health Enterprise Zones.

What am I adding to my K-1 with this screen?

When you click Add, we'll take you to a page in which you can enter any necessary adjustments required by New Jersey from your federal K-1 information. After you have added an adjustments record, you can later go back and edit or delete it. Be advised that even if there are no adjustments to make between your K-1 and your New Jersey record, you will still need to "Add" an adjustments record to be sure that you viewed all possible adjustments.

If you received an NJ-K-1 do NOT enter anything in this screen (or delete all records if you have already entered information) and return to the prior screen to enter your NJ-K-1 information. You will not be able to e-file your state return unless you have an NJ-K-1 and have entered the required information.

How will my Other Designated Contributions be used?

Drug Abuse Education Fund: Your contribution helps New Jersey children receive valuable education from highly trained uniformed law enforcement officers throughout the state in providing drug abuse education programs. Research has shown that the more resistance education children receive, the more likely they will be drug free. The monies raised will help maintain K-12 programming as well as parenting and educational programs.

For more information contact D.A.R.E. New Jersey at 202 Davis Station Rd., Cream Ridge, NJ 08514, call 1-800 DARENJ1, or visit the D.A.R.E NJ Website.

Korean Veterans' Memorial Fund: Your support to the Korean War Memorial in Atlantic City honors all the New Jerseyans who served and especially the more than 889 soldiers who died during the Forgotten War. We need to inform future generations of the past so that no one ever forgets these men and women. Your contribution will be used to maintain this place of honor.

For more information, contact: Korean War Memorial, c/o Dept. of Military and Veterans Affairs, PO Box 340, Eggert Crossing Road, Trenton, NJ 08625-0340, call 609-530-7049, or visit the Korean War Memorial Website.

Organ and Tissue Donor Awareness Education Fund: Today in New Jersey there are more than 5,000 people waiting for a life-saving organ transplant. Nationally, 18 people die each day while waiting for a donated organ. By saying "Yes" to organ and tissue donation when you apply for or renew your NJ driver's license or State ID, or by registering to be a donor online, you have the power to save lives. Help us raise awareness of the drastic need for organ and tissue donors. Begin today with your contribution to help fund organ and tissue donor awareness and education in New Jersey.

For more information and to register as a donor, visit the Donate Life Website.

NJ-AIDS Services Fund: New Jersey currently ranks fifth in the country in total cases of HIV infection with an estimated 60,000 people living with HIV/AIDS. Your donation will be used for prevention, education, treatment, and research.

Literacy Volunteers of America - New Jersey Fund: Since 1979 Literacy Volunteers of New Jersey has been committed to increasing adult literacy in New Jersey. They are the state-level organization that provides training and technical support to a network of community-based literacy programs throughout New Jersey. These local programs focus on recruiting, training, and matching volunteers with adults who need help learning to read and write or to understand and speak English. Over 5,000 adults are served yearly. Your donation will help adults acquire the literacy skills needed to reach their full potential as individuals, parents, workers, and citizens.

For more information call Literacy Volunteers of New Jersey at 1-800-848-0048 or visit the NJ Literacy Volunteers Website.

New Jersey Prostate Cancer Research Fund: Over the past several years, New Jersey has had the distinction of consistently ranking in the top ten states in the nation for prostate cancer incidence and mortality. So join the fight against prostate cancer and help New Jersey cancer researchers find a cure. 100% of your donation supports approved prostate cancer research relating to the prevention, screening, treatment, and cure of prostate cancer.

For further information, visit the New Jersey Commission on Cancer Research Website.

World Trade Center Scholarship Fund: Contributions to The New Jersey World Trade Center Scholarship will aid the dependent children and surviving spouses of New Jersey residents who were killed in the terrorist attacks against the United States on September 11, 2001, or who died as a result of injuries received in the attacks, or died as a result of illness caused by exposure to the attack sites. This scholarship is intended to defray a portion of their higher education expenses. To qualify, students must attend an eligible institution on a full-time basis.

For more information visit the NJ Grants Website.

New Jersey Veterans Haven Support Fund: New Jersey has an estimated 5,000 to 6,000 homeless veterans within its borders. The military teaches us to retrieve our wounded and bring them home. Our Veteran's Haven programs, North and South, aim to meet this challenge on the streets, in the shelters, and at the front line of human existence where our brothers and sisters find themselves in their greatest time of need. We have 200 beds where we house veterans for up to 2 years and ensure they are provided with the services that will assist them in returning to their communities as productive members.

Community Food Pantry Fund: New Jersey's food pantries assist individuals in need by providing them with nutritious foods they may not be able to afford. The Community Food Pantry Fund was established to allow each taxpayer the opportunity to help by indicating on their New Jersey income tax return that a portion of their tax refund or an enclosed contribution shall be deposited in this special fund for the purchase and/or distribution of food in conjunction with the terms of the State Food Purchase Program for those in need.

For more information, visit the Department of Agriculture Website.

Cat and Dog Spay/Neuter Fund: Every year too many dogs and cats are euthanized in New Jersey animal shelters and pounds. Spaying and neutering animals is the most efficient strategy to reduce the number of unwanted puppies and kittens. The Department of Health and Senior Services Animal Population Control (APC) Program contracts with over 160 participating veterinary hospitals in NJ to provide spay/neuter services at either $10 for animals owned by NJ residents on public assistance programs, or $20 for those which have been adopted from NJ animal shelters/pounds or rescue groups. Your contributions will help fund more spay and neuter surgeries for NJ's dogs and cats.

For more information, visit the Department of Health Website.

New Jersey Lung Cancer Research Fund: Lung cancer is the #1 cause of cancer mortality among men and women in New Jersey and the United States. Annually, approximately 6,000 new cases of lung cancer are diagnosed in New Jersey accompanied by 4,300 deaths due to the disease. 100% of your donation supports research grants relating to the prevention, screening, treatment, and eventual cure of this disease. All donations will be used and administered by the New Jersey Commission on Cancer Research (NJCCR).

For more information call 1-609-292-4043 or visit the NJCCR Website.

Boys and Girls Clubs in New Jersey Fund: The Boys & Girls Clubs provide after-school educational programming and social opportunities for youth who may otherwise be without proper supervision and susceptible to negative influences. Studies show that for every $1 spent by the Clubs, $15 of positive economic activity is generated by increased graduation rates and reductions in juvenile crime and pregnancy.

For more information visit the NJ Boys and Girls Club Website.

NJ National Guard State Family Readiness Council Fund: This fund assesses the needs of New Jersey National Guard members and their families facing financial hardship as a result of being deployed overseas.

For more information visit the National Guards Family Readiness Council Website.

American Red Cross - NJ Fund: The American Red Cross trains, mobilizes, and connects volunteers to respond in emergency situations. It also organizes blood banks and solicits blood donors. Any donation made would benefit the Red Cross services in New Jersey.

For more information visit the Red Cross Website.

Girl Scouts Councils In NJ Fund: Your contributions will ensure that every girl in New Jersey has the opportunity to be a Girl Scout. Through Girl Scouts, 93,295 girls in New Jersey build courage, confidence, and character.

For more information visit the Girl Scouts Website.

What is the Property Tax Credit/Deduction?

New Jersey allows either a credit OR a deduction for the property taxes you paid, but not both. Enter the property taxes you paid in 2014. We will calculate whether you get a greater benefit from the Property Tax Credit or the Property Tax Deduction. The maximum Property Tax Credit is $50; the maximum Property Tax Deduction is $10,000.

Do I need to file a New Jersey return if my gross income is less than $10,000 ($20,000 if Married Filing Jointly, Head of Household, or Qualifying Widow(er))?

In order to receive a New Jersey refund, you need to file a New Jersey tax return. If your New Jersey gross income is less than $10,000 ($20,000 if filing as Married Filing Jointly, Head of Household, or Qualifying Widow(er)) then you are not required to file a New Jersey tax return. However, if you have any New Jersey income tax withheld from your wages or any credits that give you a refund, you need to file a New Jersey return in order to get your refund.

Do I qualify for the New Jersey Earned Income Credit?

We will automatically calculate your New Jersey Earned Income Credit. You qualify for the New Jersey Earned Income Credit if you meet the following criteria:
  • You claimed the federal Earned Income Credit.
  • Your gross income is $20,000 or less.
  • You have at least one qualifying child for the federal Earned Income Credit.
  • Your filing status is Head of Household, Qualifying Widow(er), or Married Filing Jointly (not Single or Married Filing Separately)

Why aren't all of my medical expenses showing up as a deduction on my New Jersey return?

Deductible Medical Expenses on the New Jersey return are reduced by 2% of your income. For example, if your income is $50,000, and your medical expenses are $3,000, then 2% of $50,000 is $1,000, and your deductible medical expenses on your New Jersey return will be $2,000 ($3,000 - $1,000). If your medical expenses do not exceed 2% of your income, then the New Jersey medical expense deduction will be zero. We will automatically calculate the allowable Medical Expense Deduction, so enter the full amount of your unreimbursed medical expenses.

How will contributions to the Endangered Wildlife Fund be used?

Your donation goes directly to conservation, research, restoration, and education-real dollars that help the Endangered & Nongame Species Program to protect imperiled animals such as the bald eagle, bobcat, bog turtle, and over 400 other nongame species in New Jersey. For more information, visit www.NJFishandWildlife.com/ensphome.htm

How will contributions to the Children's Trust Fund to Prevent Child Abuse be used?

100% of your contribution goes directly to support child abuse prevention programs such as:
  • Working families who have children with disabilities and developmental challenges
  • Fatherhood programs
  • Parenting support and education
For more information, contact:
NJ Children's Trust Fund
PO Box 717
Trenton, NJ 08625-0717
Phone: 609-888-7394
Web: www.njchildrenstrustfund.org

How will contributions to the Vietnam Veterans' Memorial Fund be used?

Your support honors 1,563 New Jerseyans whose names are engraved on the Vietnam Veterans' Memorial, and it helps teach future generations about this unique time in our nation's history at the Vietnam Era Educational Center.

For more information, contact:
New Jersey Vietnam Veterans' Memorial
PO Box 648
Holmdel, NJ 07733
Phone: 732-335-0033
Web: www.njvvmf.org

How will contributions to the Breast Cancer Research Fund be used?

100% of your donation supports research relating to the prevention, screening, treatment, and cure of breast cancer. For more information, visit the New Jersey Commission on Cancer Research website.

How will contributions to the U.S.S. New Jersey Educational Museum Fund be used?

Your contribution goes directly to restoring this historic vessel and expanding educational programs for all residents of our state to enjoy and learn.

For more information, visit the Battleship New Jersey website or call 1-866-877-6262.

What are estimated tax payments? What do I enter on this screen?

Estimated tax payments are payments you make during the year if not enough taxes are being withheld from your W-2 (W2) or 1099 forms. This will generally only happen if you have business or rental income, or large amounts of interest income.

  • Enter any estimated tax payments you made for 2014.
  • Enter any amounts credited from your 2013 return.
  • Enter any amount prepaid with extension requests.

Do NOT enter any amount of your 2014 New Jersey Income Tax withheld by your employer(s) as shown on any wage or tax statements.

What are the requirements in order to claim the Dependents Attending College Exemption?

  • Student must be under 22 years of age for the entire tax year. This means that the student's 22nd birthday will not occur until 2015 or later.
  • Student must attend full time. "Full time" is determined by the institution.
  • Student must spend at least some part of each of five calendar months of the tax year at school.
  • The educational institution must be an accredited college or postsecondary institution, maintain a regular faculty and curriculum and have a body of students in attendance.

Is my military pension taxable by New Jersey?

If you are receiving a United States military pension or survivor's benefit payments, the military pension or survivors benefit is NOT taxable for New Jersey gross income tax purposes regardless of your age or disability status.

Military pensions are those resulting from service in the Army, Navy, Air Force, Marine Corps, or Coast Guard. This exemption does not apply to civil service pensions or annuities, even if the pension or annuity is based on credit for military service. Most military pensions and survivor's benefit payments are received from the U.S. Defense Finance and Accounting Service while a civil service annuity is received through the U.S. Office of Personnel Management.

What is Miscellaneous Income?

New Jersey defines Miscellaneous Income as:
  • Amounts received as prizes and awards. A prize won in a raffle, drawing, television, radio quiz show, contest, or any other event is taxable and must be included.
  • 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 wasn't 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. If you're a beneficiary who received income from an estate or trust, you need to include in your income the total distribution reported to you on a Schedule NJK-1, Form NJ-1041. If you didn't receive this form, include a net of the items listed on the federal K-1 you received instead, after adjusting interest, dividends, capital gains, business or partnership income, etc. to reflect New Jersey tax law.
  • Scholarships and fellowships. Scholarships and fellowship grants are taxable and must be included unless they satisfy all of the following conditions:
    1. The primary purpose of the grant is to further the recipient's education or training.
    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).
    3. The grant is NOT for the benefit of the grantor.
  • Residential rental value or allowance paid by an employer. The rental value of the residence that your employer furnished doesn't have to be reported if all of the following are true:
    1. The lodging is provided on the business premises of your employer.
    2. The lodging is furnished for the convenience of the employer.
    3. You're required to accept such lodging as a condition of employment.

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