New Jersey return changes: the federal deductions stop at the border

The Division of Taxation says the new federal deductions for seniors, overtime and tips do not affect a New Jersey individual return, because the Gross Income Tax has its own categories of income and deductions rather than starting from federal AGI.

The return is due Wednesday, April 15, 2026 for calendar-year filers.

• New Jersey’s Direct File option is gone because the IRS ended its Direct File tool. NJ’s own online filing remains.
• The NJ Child Tax Credit is up to $1,000 for each dependent aged 5 or younger, for taxable income of $80,000 or less. Married filing separately does not qualify.
• For the credit for taxes paid to Philadelphia, the nonresident wage tax rate was 3.44% for January to June 2025 and 3.43% for July to December.

The Pass-Through Business Alternative Income Tax election has to be made electronically before the original due date of the PTE-100. The 2026 return for calendar-year entities is due March 15, 2027, and distributive proceeds over $1,000,000 are taxed at 10.9%.