New Jersey Legislation Passed
On March 21, Governor Murphy signed several measures into law. All businesses, within all market sectors, in NJ will need guidance on how these new laws will apply.
A-3841 / S-2300 was passed by the New Jersey legislature and provides for an automatic extension of the deadline to file a Gross Income tax or Corporation Business tax return of 90 days because the Federal government extended the filing due date or payment for Federal returns. As of March 25, 2020 Governor Murphy has not signed this into law.
A-3845 / S-2284 authorize the New Jersey Economic Development Authority to provide grants during periods of emergency declared by the Governor, such as the coronavirus, and for the duration of the economic disruptions caused by the emergency.
A-3846 / S-2293 creates the Temporary Lost Wage Unemployment Program to allow those affected by coronavirus to recoup wages lost and to assist employers who pay wages to workers under quarantine. The bill appropriates $20 million for the program. Learn more here.
Wheres My State Tax Refund Wisconsin
Wisconsins Department of Revenue has an online tool, called Refund 123, that allows you to see the status of your tax refund. To use the tool, enter your SSN, the tax year and the amount of your return in whole dollars.
Refunds for taxpayers who filed electronically are typically issued within three weeks. Paper returns will take longer to process. The states fraud and error safeguards may also delay the processing of your return for up to 12 weeks.
New Jersey Issues New Change Regarding Combined Members Claiming Protection Under Public Law 86
On April 12, 2022, The New Jersey Division of Taxation announced changes to its policy for members of combined groups claiming protection from New Jersey Corporate Business Tax under P.L. 86-272. P.L. 86-272 is a federal law that prohibits states from imposing a net income tax on out-of-state sellers whose in-state activities are limited to the solicitation of sales of tangible personal property and the orders are accepted and fulfilled from outside the state. Prior to the policy change, the NJ CBT-100U return instructions stated if one member of a combined group has nexus and sufficient activities in New Jersey to be taxed based on income, no member that has nexus with New Jersey may claim P.L. 86-272 protection. However, the new policy states that protection for each member of the combined group will be determined on an entity-by-entity basis. With this change, affected taxpayers who filed New Jersey combined tax returns beginning on or after the 2019 tax year and have members in their combined group who can claim P.L. 86-272 protection may amend these returns to claim the benefit from the policy change. If you have questions about whether your company may claim protection under P.L. 86-272 in New Jersey or any other State, please contact a member of the Withum SALT group.
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The New Jersey Tax Amnesty Program
The State of New Jersey has conducted numerous tax amnesty programs. Currently, there are no active programs. The state did run a program in the past that ended January 15, 2019. This program was available for individuals and businesses with taxes owed. The Amnesty Program encourages delinquent taxpayers to become current. The state will waive penalties, and cut interest for those who file and fully pay their taxes owed. It is a program that most delinquent taxpayers should pursue.
New Jersey Leads By Example With Its New Cannabis Tax
In November 2021, New Jersey officially legalized cannabis. The legislature included a Social Equity Excise Fee which will be applied to cannabis sales in addition to the standard 6.625% state sales tax rate. This fee allows New Jersey to join Alaska, California, and Maine on taxing cannabis based partly on the weight and not solely on the price. The weight-based tax will be implemented over time as follows:
- 33 percent of average retail price per ounce for first nine months of legal sales
Then,
- $10 per ounce if average retail price per ounce is above $350
- $30 per ounce if average retail price per ounce is between $250 and $350
- $40 per ounce if average retail price per ounce is between $200 and $250
- $ 60 per ounce if average retail price per ounce is under $200
No other state imposes a weight-based tax that is low when the cost of cannabis is high and high when the cost of cannabis is low. The Legislative intent of this tax structure is to discourage illegal sellers from competing with the legal market.
Finally, New Jersey municipalities are authorized to implement a local cannabis tax of 2% on retailers, cultivators, and manufacturers and 1% on wholesalers. Local taxes need to be remitted directly to the municipality imposing the tax.
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How Long Might It Take To Get My New Jersey Tax Refund
Some factors may affect the timeline for receiving your NJ tax refund, starting with how you filed your return. If you e-filed your return, you may receive your refund in as little as four weeks. But if you e-filed your return and it requires manual processing, it could take 12 weeks or longer to get your NJ tax refund.
If you mailed a paper return or sent your return by certified mail, it can take anywhere from 12 to 15 weeks for your return to be processed.
Generally, it takes longer to process paper tax returns because of New Jerseys fraud detection measures. The state takes extra steps to authenticate paper tax returns to protect filers from identity theft and refund fraud.
Affordable New Jersey Communities For Homeowners And Renters
Attention ANCHOR Applicants
The deadline for filing your ANCHOR benefit application is December 30, 2022. We will begin paying ANCHOR benefits in the late Spring of 2023. ANCHOR payments will be paid in the form of a direct deposit or check, not as credits to property tax bills. Homeowners who filed a Homestead Benefit application last year may be able to obtain their ID and PIN numbers online. Tenants do not need an ID or PIN number to file. Visit the Division’s ANCHOR page for all filing information. Due to high call volume, the ANCHOR and Homestead Benefit Hotline may be unable to take your call at certain times. If that occurs, please try your call at another time. Our hours of operation are Monday through Friday from 8:30 a.m. to 5:30 p.m.
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New Jersey Authorizes Property Tax Rewards Program
Effective May 12, 2021,New Jersey willpermit municipalities to establish property tax rewards programs.A municipal property tax reward program would be structured as a local merchant loyalty program and marketed as an economic development tool to encourage people who live in and around a municipality to shop at businesses located within the municipality. A property tax reward program would provide monetary rewards to participating customers who purchase goods or services from participating businesses. The program would be operated by a private entity designated by the municipality. For specific language of the enacting legislation, please see L. 2021, A4806 .
How Can I Get Help Finding My Refund
If you need extra help, you can call the New Jersey Division of Taxation customer service center at 1-609-292-6400 during business hours. But take note that representatives wont be able to confirm receipt of your return until it appears in their online system. The Division of Taxation suggests waiting to call until after the estimated processing times have passed.
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New Jersey Grants Tax Relief For Hurricane Henri And Ida Victims
The New Jersey Department of Revenue announced the state will honor the recent Internal Revenue Service special tax relief for individual or business taxpayers qualifying for assistance in Hurricane Ida in disaster areas. Affected taxpayers include businesses and individuals located in the disaster areas and those whose tax records are in the disaster areas, and relief workers, and as such this guidance applies to the entire state. This relief allows for taxpayers who reside or have a business with certain tax-filing and tax-payment deadlines falling on or after September 1, 2021, to be postponed to January 3, 2022. This includes the filing and paying of tax due for payroll tax that are normally due on November 1, 2021 to be extended to January 3, 2022. The tax types that qualify for this relief include individual income tax, corporate income tax, income tax withholdings, payroll tax and limited liability entity tax. The extension to file and pay taxes does not apply to sales tax and other tax types however, taxpayers may contact the DOR to request an extension or waiver of penalties if affected by disaster-related delays. All individuals may be eligible for abatement of penalty and interest on tax that normally accrues during the extension period.
Live In New Jersey But Work In New York
If you were a resident of New Jersey for any part of the year, you must file a New Jersey state income tax return. That includes living in New Jersey for only part of the year. You will owe personal income tax to New Jersey on your New York wages, even if your employer didnt withhold New Jersey income tax from your pay. If New York income tax was withheld, you need to file a New York state nonresident tax return to receive a refund of the tax paid to New York.
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Confronting The States Challenges
Due to its proximity to New York City and a population density that leads the nation, New Jersey became an epicenter for the pandemic last year. Over 22,000 lives have been lost to the virus, and hundreds of thousands fewer New Jerseyans are employed now than they were last winter. This virus has been a blow to the entire state, but has hit some communities harder than others. Communities of color, in particular, struggled prior to the pandemic and have suffered exceptionally from the health and economic impacts of the virus. This budget speaks directly to the needs of these communities in recovering. The coronavirus has also exposed many of our governments long-standing problems, including decades of fiscal gimmickry and neglect of state capacity. The Murphy Administration is committed to addressing these challenges and will continue to achieve real change.
New Jersey Enhances Child And Dependent Care Credit
New Jersey Governor, Phil Murphy, signed Bill S4065, which enhances the child and dependent care credit, into effect on December 3rd, 2021. This enhancement is effective retroactively for tax years beginning on or after January 1, 2021. Bill S4065 removes the $500 and $1,000 maximum credit and the credit is now refundable. Previously, this credit was fully phased out once a taxpayer had $60,000 of taxable income. Bill S4065 increases the taxable income phase-out threshold to $150,000 of taxable income. Regardless of filing status, the New Jersey credit percentages are:
- Income between $0 and $30,000 50% of the federal credit
- Income between $30,000 and $60,000 40% of the federal credit
- Income between $60,000 and $90,000 30% of the federal credit
- Income between $90,000 and $120,000 20% of the federal credit
- Income between $120,000 and $150,000 10% of the federal credit
- Income greater than $150,000 0% of the federal credit
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Sales And Use Tax Online Filing And Payments
Quarterly Sales and Use Tax Returns are due before 11:59 p.m. of the 20th day of the month after the end of the filing period. If the due date falls on a weekend or legal holiday, the return and payment are due on the following business day.
You do not have to wait until the due date to file. You can file your return early for the current quarter and schedule a future payment on or before the return due date.
If you do wait until the filing due date, you may experience high volume related errors with the online filing system. These issues are usually intermittent, but may impact your ability to file timely. Alternately, you may use the EZ Telefile System by calling – , and select option 1.
Plan ahead to ensure timely filing and payment.
Wheres My State Tax Refund Maryland
Visit the Comptrollers website to check the status of your Maryland tax refund. All you need to do is enter your SSN and your refund amount. Joint filers can check their status by using the first SSN on their return.
According to the state, it usually processes e-filed returns the same day that it receives them. That means you can expect your refund to arrive not too long after you file your taxes. On the other hand, paper returns typically take 30 days to process. For security reasons, it is not possible to verify any of your tax return information over the phone.
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How Can I Track A New Jersey Tax Refund
New Jersey offers a couple of ways to check the status of your tax refund. One way is to check its status on the New Jersey Division of Taxation website. Youll need to provide the first Social Security number listed on your tax return and the exact amount of your anticipated refund.
Through the online system youll be able to see whether the state has received your return, if its being processed and if and when your refund has been approved.
You can also call the Division of Taxations automated refund inquiry system, at 1-609-826-4400 or 1-800-323-4400, which is toll free in New Jersey, New York, Pennsylvania, Delaware and Maryland. The state updates both systems weekly, and you can access them 24/7.
If theres no update in the online system, you shouldnt assume theres a problem some returns may need more time to be processed. If theres an issue with your return, the Division of Taxation should send you a letter.
New Jersey Angel Investor Tax Credit Update
The New Jersey Angel Investor Tax Credit Program provides tax credits against corporate or gross income taxes for qualifying investments in a New Jersey emerging technology business. Governor Phil Murphy increased the annual cap from $25 million to $35 million earlier this year. Applicants have six months from the investment date to submit the dual application, consisting of an investor section and a technology company representative section. All applicants must file NJ taxes for the year. Any applicants who submit an investment but cannot coordinate with a NJ emerging technology company to submit the dual application as of October 1, 2021, will not be recommended for the program.
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Leading On Public Education And Workforce Training
- Bolstering Pre-K through 12 Education: This year, the Murphy Administration proposes spending $624 million more on direct pre-K through 12 education aid than it did in FY2021, including investing $25 million more into Extraordinary Special Education Aid and creating a $50 million Stabilization Aid program. The Administration has increased direct pre-K through 12 spending by nearly $1.5 billion since 2018. The Department of Education has approved over 6,500 preschool seats in over 100 new districts, with 1,800 more seats in 25 new districts expected in FY2022.
- Strengthening our Workforce: The proposed budget will continue to use the Workforce Development Partnership Fund to support programs like the New Jersey Apprenticeship Network. It will also help fund the new Career Impact Bond program in partnership with the New Jersey CEO Council, and provide seed funding to implement Future of Work Task Force initiatives like Lifelong Learning Accounts and worker training stipends. The new Office of Climate Action and the Green Economy will also lead on addressing climate change, ensuring New Jerseys clean energy future, and transitioning to a green economy while prioritizing equity and environmental justice.
Investing In Our Future
The Governors budget proposes major new investments into pre-K through 12 education, infrastructure, and economic development. Some of these investments build on prior-year initiatives that have shown clear results for New Jerseyans. Due to our public education investments, the largest number of school districts have kept school levies below two percent since 2014. Due to our NJ TRANSIT investments, for the fourth straight year, commuters will see no fare hike. The Governor also proposes new investments to ensure an equitable recovery. As the State rebuilds post-pandemic, these investments will be critical to keeping New Jersey the best state to raise a family.
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New Jersey Modifies Sales Tax Exemption For Recycled Materials
The State of New Jersey released a statement that will require the Division of Taxation to give an annual review on the viability of sales tax exemption for qualifying recycled materials for manufacturing companies. Once the annual review, if completed, the results will be reviewed by the Legislature for whether the exemption should continue. Until legislation is enacted terminating the exemption, manufacturing facilities should continue to their exemption process of recycled materials.
New Jersey Division Statute Of Limitations Extensions
Under New Jerseys State of Emergency, the statute of limitations for assessments and refund claims has been extended. The extension to file a claim for refund or credit for all taxes administered by the Division has been extended until January 1, 2022 . The extension of the statute of limitations applies to all refund claims where the statute of limitations was originally set to expire on or after March 9, 2020 and before January 1, 2022. Likewise the statute of limitations for assessments which were scheduled to expire after April 14, 2020 have also been extended to January 1, 2022 New Jersey Treasury Refund or Credit
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