Eatontown, NJ | tax@ewllc.net

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NEW JERSEY TAX CHANGES

EFFECTIVE JANUARY 1, 2017

For tax years beginning on or after January 1, 2016, all taxpayers and tax preparers must file CBT returns and make payments electronically. The mandate includes all CBT returns, estimated payments, extensions, and vouchers.

 

You may make a payment by EFT (pre-registration required), e-check or credit card through the Division of Taxation’s online Corporation Business Tax Service at https://www1.state.nj.us/TYTR_BusinessFilings/jsp/common/Login.jsp?taxcode=20.

 

On October 14, 2016, Governor Chris Christie officially signed legislation implementing a new tax package to raise money for the Transportation Trust Fund to help repair New Jersey’s roads, bridges and various other infrastructure.

 

As part of the tax package signed there will be several changes to the tax laws over the coming years.  Effective January 1, 2017 the following changes will go into effect:

 

Sales and Use Tax

 

The Sales and Use Tax rate will decrease from 7% to 6.875% effective January 1, 2017

 

Estate Taxes

 

The Estate Tax exemption will increase from $675,000 to $2,000,000 effective January 1, 2017.   The New Jersey Inheritance Tax  remains unchanged.

 

Retirement and Pension Income Exclusion

 

The retirement and Pension Income Exclusion is available to New Jersey taxpayers age 62 or older on the last day of the calendar year or disabled taxpayers who qualify for social security disability benefits.   The income limitation for the exclusion is gross income of $100,000 or less.

 

Married Filing Jointly:   The Exclusion will increase from $20,000 to $40,000 effective January 1, 2017.

 

Married Filing Separately:  The exclusion will increase from $10,000 to $20,000 effective January 1, 2017.

 

Individual Filing:  The exclusion will increase from $15,000 to $30,000 effective January 1, 2017.

 

There are several additional parts to this legislation which will go into effect in future years, watch here for updates as these additional tax changes go into effect.