Official Site of The State of New Jersey

Important Income Tax Changes for Tax Year 2019

Filing Deadline

On April 14, 2020 Governor Murphy signed into law the "COVID-19 Fiscal Mitigation Act" (P.L. 2020, c.19) that automatically extends the tax filing and payment due date to July 15, 2020. Individual Gross Income Tax calendar year filers now have until July 15 to file and pay their taxes, including estimated tax payments due on April 15. Penalties and interest will not be imposed on the balance of tax due between the original due date and the extended due date for returns and/or payments submitted by July 15, 2020.

Fiscal year filers must file their returns by the 15th day of the fourth month following the close of the fiscal year. If a due date falls on a Saturday, Sunday, or legal holiday, that return is due on the following business day.

Retirement Income Exclusions

For Tax Year 2019, you may be eligible to exclude a maximum amount of pension and/or other retirement income of $80,000. See Income Exclusions for more information.

Retirement Income Exclusions
	Filing Status
Tax Year	Married/CU Couple, Filing Joint Return	Married/CU Partner, Filing Separate Return	Single, or Head of Household, or Qualifying Widow(er)/Surviving CU Partner
2016 and prior	$20,000	$10,000	$15,000
2017	$40,000	$20,000	$30,000
2018	$60,000	$30,000	$45,000
2019	$80,000	$40,000	$60,000
2020 and after	$100,000	$50,000	$75,000
*Chart reflects the scheduled increases in the Retirement Income Exclusion amount, occurring over a four-year period, beginning with Tax Year 2017.

Form NJ-1040

Two lines have been added to the NJ-1040 for the 2019 return:

• Line 38d – Homeowner/Tenant Status - Fill in the oval indicating whether you were a homeowner, tenant, or both during 2019.
• Line 52 – Shared Responsibility Payment (See below)

A new schedule has been added for taxpayers to provide healthcare coverage information.

• Schedule NJ-HCC – Health Care Coverage

Shared Responsibility Payment

Beginning in 2019, New Jersey residents who are required to file a return (and members of their tax household) must have minimum essential health coverage for the entire year unless they qualify for an exemption. A tax household includes the taxpayer, their spouse (if filing a joint return), and any individuals they claim as dependents on their NJ-1040. It also includes any individuals they can, but don’t, claim as dependents on their return. If a taxpayer or anyone in their tax household did not have the required coverage and does not qualify for an exemption, they may owe a shared responsibility payment.

See NJ Health Insurance Mandate for more information.

The Wounded Warriors Caregivers Credit

Changes to Form NJ-1040-HW

A question has been added to Part II, line 10 to indicate the relationship to the qualifying service member.

Veteran Exemption

Beginning with Tax Year 2019, the veteran exemption increased from $3,000 to $6,000. Qualifying taxpayers can submit the required documentation online and claim this exemption on line 9 of the NJ-1040 .

Spouses of Military Personnel

Federal law allows spouses of military personnel to choose the same legal residence as the service member for state and local tax purposes. The spouse does not have to live in the state or live with the service member spouse during the year. If the spouse lives in New Jersey but has chosen a different state as their legal residence, they are not subject to tax on wages earned in New Jersey. All other types of income are subject to tax. Wages earned in New Jersey by spouses who live outside New Jersey are also subject to tax. If a spouse had income other than wages or lived outside New Jersey, or if their wages were exempt but New Jersey tax was withheld in error, they should file a New Jersey Nonresident Income Tax Return (Form NJ-1040NR ).

Earned Income Tax Credit

The New Jersey EITC amount increases to 39% of the federal Earned Income Tax Credit for 2019.

Credit for Excess UI/WF/SWF; DI; FLI Withheld

For 2019, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $146.20. The maximum employee disability insurance contribution was $58.48. The maximum employee family leave insurance contribution was $27.52. If you had two or more employers, you may have contributed more than the maximum amount(s). To claim credit on the tax return for excess withholding, complete Form NJ-2450. More information on UI/DI/FLI is available.

Credit for Taxes Paid to Other Jurisdictions

The Philadelphia nonresident wage tax rate for 2019 was 3.4567% (.034567) from January 1 to June 30, and 3.4481% (.034481) from July 1 to December 31.

Property Tax Relief Programs

Senior Freeze (Property Tax Reimbursement)

The Senior Freeze Program reimburses eligible senior citizens or disabled persons for property tax increases. Eligible residents must file a 2019 Senior Freeze application (Form PTR-1 or PTR-2). Updated information for the program is posted as it becomes available.