NJ residents may see changes to tax returns under new laws

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New Jerseyans may see some changes to their tax returns this year as new federal tax laws go into effect.

The biggest changes that many New Jersey taxpayers may see are the deductions for state and local taxes. Those deductions are capped at $10,000. The standard individual deduction has gone up.

“The individual is a flat $12,000 for single people. For couples it's $24,000,” says accountant Joe Petrucelli.

Petrucelli says that this is an important year to strategize when it comes to the changes in the tax law.

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“I’m finding for the most part most people are paying less than last year,” he says.

The new tax law took effect early this year after being signed by President Donald Trump. Taxpayers are advised to check their pay stubs to notice how much was withheld for federal taxes. Tax refunds this year may not be what they expect.

“Unfortunately, because of the revised withholding, they're not getting the refunds they would because they would be getting $10 more a week or whatever,” says Petrucelli.

Some New Jerseyans may also find themselves in new tax brackets. Income levels for most of the seven tax brackets have changed, along with the percentage of the income tax they pay.

The new tax law is not permanent. The legislation runs out after 2025.

The spring deadline to file income taxes is just over two months away.

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