Child Tax Credit
The Division is introducing a new Child Tax Credit that reduces any tax owed and can result in an increased refund for a taxpayer. Beginning in Tax Year 2022, resident taxpayers with taxable income of $80,000 or less may qualify for a credit of a set amount for each child age 5 and under based on income. The credit is available for all filing statuses except married, filing separate.
Employee Withholding
The Division updated the New Jersey Income Tax Withholding Instructions (NJ-WT) to include withholding and reporting guidance for compensation paid to election workers, and to clarify that combat zone compensation is only excludable from Income Tax for members of the U.S. Armed Forces.
Refund Anticipation Checks and Loans
Beginning in 2023, tax preparers are prohibited from requiring clients to enter into a refund anticipation check or loan agreement in order to complete a tax return, and from using language that would lead the taxpayer to believe that the refund anticipation check or loan is provided at no cost. Additionally, tax preparers must provide a statement itemizing all service charges or fees.
Property Tax
ANCHOR Program
Anyone who did not receive their 2019 ANCHOR filing information within 10 business days of their county’s mailing due date can call the ANCHOR Hotline for assistance at 1(888) 238-1233.
FAQs
The Division added a general FAQ to the website along with an FAQ specific to homeowners and tenants.
Sales Tax
Sign Installation and Purchase
The Division updated the S&U-3, a Sales and Use Tax publication for contractors that outlines their Sales Tax obligations under the law. The revisions clarified the taxability of sign installation services, effective October 1, 2022.
Cigarette Tax
New Cigarette Minimum Price List
There is a new cigarette minimum price list as of October 5, 2022. Prices have been updated for Commonwealth Brands, Inc.; ITG Brands, LLC; King Maker Marketing, Inc.; and Premier Manufacturing.
View Cigarette Minimum Price List
Miscellaneous
Scam Alert! IRS Finance Information Email
Some taxpayers receive emails that appear to be from the IRS. These emails are a phishing scam used by scam artists to trick victims into providing personal and financial information. Do not respond or click on any link. If you receive this scam, forward the email to phishing@irs.gov and note that it seems to be a scam phishing for your information.
Interest Rate Increase
Effective October 1, 2022, the Division increased the interest rate assessed on unpaid tax balances to 9.25%. Previously, the interest rate was 7.75%. This change resulted from an increase in the prime rate by commercial banks after the Federal Reserve, the nation’s central bank, raised interest rates last month.