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CPA Firm, Sax LLP, Explains New Jersey Tax Law Changes And Their Benefits To Residents On Their Web by John Doe






Article Author Biography
CPA Firm, Sax LLP, Explains New Jersey Tax Law Changes And Their Benefits To Residents On Their Web by
Article Posted: 11/14/2016
Article Views: 116
Articles Written: 10105
Word Count: 467
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CPA Firm, Sax LLP, Explains New Jersey Tax Law Changes And Their Benefits To Residents On Their Web


 
Business
US Tax Form 1040

Governor Christie signed a bill that represents a big step forward in helping both New Jersey residents and the state itself. Residents will reap the benefits of a reduction in sales tax, increase in the retirement income exclusion, increase in the earned income credit and a new personal exemption for veterans.

Sax LLP ensures their clientele are kept aware of these recent changes, along with explanations as to why these changes have been put into play and why New Jersey state residents will benefit from them. One way they do so is to post this information freely on their website.

The bill also includes the long-awaited elimination of the state’s estate tax, a move which is intended to improve New Jersey’s reputation among business owners and keep more high-net-worth residents in the state.

In turn, the state will lose its notoriety for being one of only two states that still have both the estate and inheritance tax. The bill will also improve New Jersey’s ranking among states with the highest rates of state taxes.

The bill increases the estate tax threshold from the current $ 675,000 to $2,000,000, effective January 1, 2017. The tax will be eliminated altogether on January 1, 2018.

The sales tax, currently at 7%, will be reduced to 6.875% on January 1, 2017 and further decreased to 6.625% on January 1, 2018.

Sax LLP explains that the current retirement exclusion is $20,000. Beginning in 2017, it will increase by $20,000 each year until 2020, at which time $100,000 of retirement income will be exempt from state income taxation. The earned income tax credit was also expanded to provide a higher credit to lower income families. It will increase from 30 to 35 percent, effective in the 2016 tax year.

The company was sure to include that, in addition to these beneficial tax changes, New Jersey veterans who have been honorably discharged from active service in the military or National Guard will now receive a personal exemption on state income tax to make their lives more affordable in our state.

Lastly, the bill does provide for one tax increase. The state gas tax will be raised from the current 14.5 cents to 37.5 cents to help finance an 8-year extension of the Transportation Trust Fund. Overall, it is anticipated that the bill’s provisions will have a significant, long-term benefit for New Jersey, making the state more competitive, advancing its reputation, and encouraging capital investment in the Garden State. More helpful information, announcements, and explanations can be found at https://www.saxllp.com/category/news-events/general-news

Media Contact:
Corin Huff
Company: Sax LLP
Address: 855 Valley Road, Clifton, NJ 07013
Phone: 973.472.6250, ext. 203
Email: chuff@saxllp.com

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