New Jersey Tax Updates

Gross Income Tax

Convenience of the Employer Sourcing Rule Enacted for Gross Income Tax

A new law was signed July 21, 2023, that establishes a “convenience of the employer test” (convenience rule) for nonresident income sourcing. Under the convenience rule, a nonresident taxpayer’s employee compensation from a New Jersey employer for the performance of personal services is sourced to the employer’s location (New Jersey) if the employee is working from an out-of-state location for their own convenience rather than for the necessity of their employer. The new law is retroactive to January 1, 2023. Affected taxpayers must begin withholdings and/or make estimated payments for Tax Year 2023 as soon as possible. Employers should consider making adjustments to withholdings as an accommodation to employees, so that they are not underpaid. The Division will not impose penalty and interest as long as the taxpayer begins complying with the new law as of September 15, 2023. Click here for more information.

Property Tax

Changes Coming Next Year to the Senior Freeze

Beginning with the 2023 filing season, the income limit for the Property Tax Relief program will increase to $150,000 from $99,735, and the requirement that an applicant must be a New Jersey resident for 10 consecutive years will be eliminated. Additionally, a new State law allows a one-time exception for taxpayers to retain their base year when their income exceeds the limit on the application. Click here to learn more.

ANCHOR Program Updates

The ANCHOR benefit for senior citizens over 65 has increased by $250. If you receive an ANCHOR Benefit Confirmation Letter and all of the information contained in the letter is correct, you do not have to file an application for the 2020 benefit. We will file an application on your behalf based on your 2019 application. Learn more.

Garden State Film and Digital Media Jobs Act

This new law amends the definitions and eligibility requirements that the New Jersey Economic Development Authority uses to award Film Production Tax Credits. The law also changes the timeframe of the credits availability, and the definition of “qualified film production expenses” to include deferred compensation payments paid by a New Jersey studio partner based on work or services provided on a production.

New Jersey Aspire Program

This new law allows New Jersey Aspire Program tax certificate holders to transfer the tax credit to another recipient. The new recipient must use the tax credit within the period for which it was originally issued.

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