Every month it is easy to spend a large amount of money and find yourself wondering where everything went. Most purchases and amounts of money can be accounted for but some pennies and nickels slide through our fingers never to be found again. For some of us this money disappears each time we purchase something because of taxes. Knowing the state tax in New Jersey will help individuals become more aware of how they are spending their money.
Shopping is one of the favorite pastimes of many be it window shopping or shopping for the new school year. Unfortunately, shopping is always a great way to lose money in taxes. New Jersey tax laws include sales taxes levied against many items such as furniture and electronics. However, there are certain items that are completely tax free including food, drugs, clothing, and even footwear. Having clothing and food available free of taxes gives parents and others a chance to save a few dollars every time they go shopping. The only times when these products are not exempt is when shopping in certain popular areas such as Atlantic City or Cape May County.
With gas prices always rising most people are constantly complaining about how much they are forced to spend at the pump. The state taxes on fuel do not help make the situation better but the taxes on gasoline and diesel are still much more reasonable than some states. At this time individuals living in, or driving through, New Jersey have to pay 14.5 cents a gallon for gasoline and 17.5 cents per gallon on diesel fuel.
The state tax laws in New Jersey for income are based upon how much money you and your household earn each year. The tax range starts at 1.4 per cent and goes to 8.97 per cent with six different tax brackets used to determine taxes. Unlike many states New Jersey does tax retirement income and requires that everything, including IRA withdrawals, is reported on your state tax return. Some items taxed on a state tax return are different from a federal tax return so seek advice if you are new to filing taxes in New Jersey.
There are exclusions available designed to help residents reduce the amount of income they have. A lower amount of taxable income means a lower amount of taxes being paid at the end of the year. These exclusions range from $15,000 to $100,000 and are based entirely upon your age and martial status. The only type of retirement income that is nontaxable is military retirement pay.
|If you are facing a tax audit, or other tax law issues, consult with a tax attorney in your area to discuss your options.|