Views expressed by our advertisers and sponsors are their own, and are not endorsed by NJ Spotlight News. ; Pass-through entity taxes like this one are commonly considered a workaround to the federal state and local tax (SALT) deduction limitation. Among the bright spots were sales-tax collections, which remained ahead of the previous year’s totals for the fifth straight month, according to Treasury’s figures. Flat rate of corporate tax: The corporate income tax rates currently imposed would be replaced with a positive standard rate of tax applicable to all companies, at a rate of no lower than 10%, imposed on the worldwide income of all Jersey resident companies, and on the local source income of Jersey branches of foreign companies. New Jersey State Tax News Publications. Murphy and lawmakers attempted to establish a SALT workaround for other New Jersey taxpayers in response to the Republican Trump administration’s policy change, but it was largely blocked by new Internal Revenue Service rules. Back in January, New Jersey put into effect its "Pass-Through Business Alternative Income Tax Act," which allows these businesses to pay income tax at the entity level instead of the personal level. Last year, April revenue collections fell way off the previous year’s pace after Murphy and lawmakers agreed to delay the deadline for state income-tax payments and extend the term of the traditional, 12-month fiscal year in response to the pandemic. May 2, 2020. Guidance for employees looking to claim a home-working allowance if employers have not paid expenses, is also available on the site. NJ Tax E-News; NJ Tax E-News. While the total amount paid in nonresident taxes is unclear, at stake for New Jersey is as much as $1.2 billion credited to its residents for income taxes paid to New York. But Treasury collected nearly $1 billion in December 2020 under the state’s newly instituted Business Alternative Income Tax. 2020 income tax returns can now be filed online | Jersey Evening … On May 6, 2020, the New Jersey Division of Taxation expanded on its March 30, 2020 guidance concerning the assertion of nexus and the income tax withholding requirements that apply for employees temporarily working in the state due to COVID-19.. Much of the December revenue increase will likely be offset before the current fiscal year ends, the officials said. Subscribe to NJ Tax E-News to receive notifications of new information regarding the taxes and programs administered by the New Jersey Division of Taxation. But Treasury officials said the December collections were largely buoyed by a recent change in the way that many owners of businesses known as “pass throughs” — which include many small businesses — are paying their state taxes. Moreover, proceeds from income tax — the largest single source of revenue for the state budget — remained 3% behind last year’s totals through the first half of the fiscal year. levied on earnings over $1 million and up to $5 million, largely blocked by new Internal Revenue Service rules, Business Report: Rethinking reopening, unemployment rate, Walmart vaccines, Trump Plaza, What it has cost NJ to borrow billions during health crisis, Business Report: Unemployment claims, student loan payment moratorium, wind energy industry grants, Business Report: PPP loan approvals, Comcast data cap, Trump Plaza casino demolition, Business Report: Main Street businesses, SALT deduction, electric trucks, Sweeney renews push for reform of NJ government spending, Business Report: Jobless claims, Biden’s economic plan, casino revenues, Business Report: Small business pessimism, PPP loan forgiveness, unemployment benefits delayed, Mixed reactions from NJ business community to 2021 State of the State. Pass-Through Business Alternative Income Tax Effective for taxable years beginning on or after January 1, 2020, New Jersey will allow a PTE to elect to be taxed at the entity level. Major revenues collected through the halfway mark of the state fiscal year were up by nearly $800 million year-over-year, thanks to an increase of more than 40% recorded during December, according to figures released by Treasury on Wednesday. New Jersey leaders reach deal to enact tax hike on millionaires. New Jersey committee advances legislation exempting forgiven PPP loans from state’s gross income tax MonroeNow Online News | 6h (The Center Square) – The New Jersey state Senate Budget and Appropriations Committee voted 12-0 in favor of a bill to exempt Paycheck Protection Program (PPP) loans that are forgiven by the federal government from New Jersey’s gross income tax. Murphy’s administration has projected an overall 2% increase in sales-tax collections through the end of June. Jersey, like the UK's other Crown dependencies of Guernsey and the Isle of Man, is facing up to a moment of truth as it struggles to fit its corporate tax regime within the Iron Maiden of the EU's Code of Conduct Committee. The new state tax policy restored the full federal deduction for state and local taxes for the owners of pass-through businesses located in New Jersey. by ... Jersey will soon implement the OECD's mandatory disclosure regime (DAC6) through its own mandatory disclosure regime; David Dorgan details its terminology and requirements. ©2021 NJ SPOTLIGHT NEWS, ALL RIGHTS RESERVED, Still, latest Treasury data suggests state revenues have not taken as big a hit during pandemic as Murphy administration had feared. New Jersey Gov. It remains to be seen whether newly sworn-in President Joe Biden will try to reverse those policies or work with fellow Democrats who now control both houses of the Congress to repeal the cap on the SALT deduction, which was set at $10,000. Do New Jersey Residents Working From Home Still Have To Pay … New Withholding Rate for Remainder of 2018 : 03/16/18: Notice: New Jersey’s Treatment of Deemed Repatriation Dividends Reported Pursuant to Internal Revenue Code (IRC) Section 965 : 01/12/18: New Jersey Income Tax returns were mailed the first week in January. Lottery revenues were also ahead of last year’s pace, by nearly 9% in December, and 7.6% through the first six months of the fiscal year. This form is for income earned in tax year 2020, with tax returns due in April 2021.We will update this page with a new version of the form for 2022 as soon as it is made available by the New Jersey government. Jersey Gross income tax rate of %, spread across tax brackets news for tax collections — due to state... End of June Charge – Finally some Good news for tax year.. 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