2019 Tax Returns: What You Should Know In New Jersey

NEW JERSEY — Congress passed major tax legislation in December 2017, and while the majority of these changes were effective for the 2018 tax year, a few changes will be new in 2020 for your 2019 tax filings.

New Jersey already dealt with some major changes last year when the state was among a group hurt by the 2017 Tax Cuts and Jobs Act's $10,000 cap on state and local tax (SALT) deductions, according to a report from Fitch Ratings, a financial advisory publication. Read more: Report Says Trump Tax Cut Hurt NJ: Here's How

Here are a few of the most important changes for your tax year 2019 filings in New Jersey:

Standard Deduction

Standard deduction is a dollar amount that reduces the amount of income on which you are taxed and varies according to your filing status. The standard deduction for each filing status for the 2019 tax year has changed slightly from 2018, according to the Internal Revenue Service.

• Single: $12,200 — Up from $12,000 for 2018.
• Married filing jointly or qualifying widow: $24,400 — Up from $24,000 for 2018.
• Married filing separately: $12,200 — Up from $12,000 for 2018.
• Head of household: $18,350 — Up from $18,000 for 2018.

Health Care

Tax year 2019 will be the first time that form 1040 will not have the “full-year healthcare coverage” or exempt box; and Form 8965, Health Coverage Exemptions, will no longer be used.

Reminder On New Tax Brackets

The bill passed by the President Donald Trump administration in 2017 kept the seven tax brackets but lowered the number of the tax rates. Additionally, it also changed the income thresholds at which the rates apply.

These new rates went into effect for the 2018 tax year, but here’s a reminder for the 2019 tax year:

Tax Bracket And Thresholds For Single Filers In 2019 Tax Year

Tax Rate — Taxable Income Bracket

10 percent — $0 to $9,525
12 percent — $9,526 to $38,700
22 percent — $38,701 to $82,500
24 percent — $82,501 to $157,500
32 percent — $157,501 to $200,000
35 percent — $416,701 to $418,400
37 percent — More than $500,000

Tax Brackets And Thresholds For Married Couples Filing Jointly in 2019 Tax Year

Tax Rate — Taxable Income Bracket

10 percent — $0 to $19,050
12 percent — $19,051 to $77,400
22 percent — $77,401 to $165,000
24 percent — $165,001 to $315,000
32 percent — $315,001 to $400,000
35 percent — $400,001 to $600,000
37 percent — More than $600,001

It’s a date most people don’t need to be reminded of, but April 15 is the last day you can file your return for the 2019 tax year — that is, of course, unless you’ve applied for an extension.

Here are the three major components of your tax filings that are due on April 15:

1. Individual tax returns are due for tax year 2019.
2. Individual tax return extension forms are due for tax year 2019.
3. If you haven’t already funded your retirement account for 2019, you need to do so by April 15, 2020.

New Jersey Tax Revenues

The Department of the Treasury reported revenue collections held steady in recent months, with combined collections for the major taxes totaling $2.137 billion, up $206.4 million, or 10.7 percent above last November.

New Jersey officials, as a result, said they don't anticipate any major tax changes on the state level in the immediate future.

However, there remains ongoing uncertainty surrounding the continuation of these trends for the remaining months of FY 2020.The Gross Income Tax (GIT), the state’s largest revenue stream, totaled $897.6 million for the month of November, up 5.9 percent above last November.

GIT collections, which are dedicated to the Property Tax Relief Fund, totaled $4.728 billion, year-to-date, up 5.4 percent for the first five months of the fiscal year.

The Corporation Business Tax (CBT), which was boosted by strong final extension payments, reported $108.3 million in November and $1.252 billion year-to-date, 33.1 percent more than 2018.

Estimated tax payments have also been relatively strong, impacted in part by the implementation of combined reporting and market-based sourcing, which were both effective for the first time this tax year, treasury officials said.

However, "concerns have been expressed by tax analysts that some corporations are likely to have been overpaying state taxes upfront while they analyze the tax base implications flowing from the federal Tax Cut and Jobs Act," treasury officials said.