South Jersey Pro Offers Tips To Those Who Do Their Own NJ Taxes

HADDONFIELD, NJ – There are several things that those who prepare and file their own state taxes need to remember to keep in mind to minimize errors and maximize their refund, a Haddonfield tax preparer told Patch.

“Most people, especially if they do their taxes on their own, have no idea” about some components of completing and filing their state taxes, Jaimee Hammer, the owner of Hammer Taxes and vice president of the National Association of Tax Professionals said in an interview.

Somewhere between 67 million and 72 million U.S. taxpayers will likely prepare and file their own tax returns this year, according to efile.com.

With New Jersey’s deadline for filing state taxes, April 18, rapidly approaching – April 15 is a state and federally observed holiday, hence the reason for the extra 3 days – Patch asked Hammer to discuss six potential sources of confusion New Jersey residents may have when completing their own taxes.

Veterans deduction

The deduction that the state put into effect for veterans a few years ago is still in effect and equals $6,000 per veteran, Hammer explained.

“If you have a spouse who is a veteran make sure they pre-certify yourself with the state” for this deduction, she said. “These people only need to certify themselves once and then they can utilize the deduction each year.

Middle-class income rebate

A middle-class income rebate check of $500 that New Jersey residents who filed under the married filing joint household status and had a taxable income of up to $150,000 received in 2021 should not be counted as taxable income, Hammer said.

This type of check and corresponding classification on one’s tax return was also sent to New Jersey residents who filed under the single status and had a taxable income of up to $75,000, she continued.

Personal medical expenses

New Jersey taxpayers often do not remember that the state’s income threshold for deducting personal medical expenses – 2 percent – is lower than the federal threshold of 7 1/2 percent, according to Hammer.

Contrary to a widely held belief, “many households in New Jersey do have enough medical expenses that it makes sense to do this,” she said.

Unemployment compensation

The surge in unemployment claims spurred largely by the COVID-19 pandemic has not spurred a change in the tax status of unemployment money people receive, Hammer said.

“Unemployment is not taxable on your New Jersey tax return, only on the federal tax return,” she continued.

Property tax deduction

“New Jersey is one of the few states that allows a property tax deduction on the state return,” Hammer said, adding that cap for doing increased several years ago to $15,000.

“This has allowed so many people in New Jersey to deduct all of their taxes when it comes to property taxes,” she noted. “

Reciprocal tax agreements

New Jersey residents who work in Pennsylvania do not have to pay Pennsylvania state income tax, and neither do those that live in New Jersey but work in New York City. That’s because these two entities have reciprocal agreements with New Jersey, Hammer said.

However, those that live in New Jersey and work in the City of Philadelphia or the States of Delaware and New York, do have to pay those entities' taxes, Hammer said.

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