Quick Answer
If you live in Red Bank, Fair Haven, Rumson, Little Silver, Shrewsbury or Tinton Falls, your return usually turns on three New Jersey issues: property taxes, state income tax brackets, and whether you or a spouse commute into New York. Our Red Bank office at 19 N Bridge Avenue prepares federal and state returns for local households and small businesses.
Property taxes and the New Jersey deduction
Monmouth County homeowners pay some of the highest property taxes in the country. New Jersey lets eligible homeowners and renters take a property tax deduction (up to $15,000 of property taxes paid) or a smaller credit on the state return, whichever helps more. Renters count a portion of their rent as property tax.
Separately, the ANCHOR program provides property tax relief payments to eligible homeowners and renters. It has its own application, so do not assume your tax return covers it.
Federal SALT limits
On your federal return, state income tax and property tax fall under the state and local tax (SALT) deduction cap. Recent federal law raised that cap for many filers, with a phase down at higher incomes. Whether itemizing beats the standard deduction depends on your mortgage interest, charity and income level.
What to bring
- W-2s, 1099s and any K-1s
- Property tax bills or your mortgage year end statement
- Rent receipts if you rent
- Last year's federal and New Jersey returns
- Childcare, education and charitable receipts
Tax rules and amounts change. This article is general information, not advice for your specific situation.
Keep reading
Questions about your own situation? Book an appointment with the My Tax Fella team.