NEW JERSEY RENTER CREDIT

Forum|Forum|3 years ago
January 27, 2023
2 replies
49 views

Hi to all. This the first time I am going to file for a new client from New Jersey. I was googling and here to find out how to calculate the renter credit. Which I found out that if a renter paid 365 days in New Jersey for monthly payment $1450, client can take a credit for 12* $1450=$17400 so $17400*18%=$3132

This credit reduces tax liability. If I am right, let me know. This is a huge credit, can not believe it. I do not have any objection about that why this is a lot, just correct me if I am wrong.

The courtesy of a reply would be appreciated.

ProSeries Professional

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

I don't do NJ, but a quick look at the rules state Homeowners and tenants who pay property taxes on a primary residence (main home) in New Jersey, either directly or through rent, may qualify for either a deduction or a refundable credit when filing an Income Tax return.

I don't know for sure but I would think if you use the 18% it would be a deduction and not a credit, but you need to look up the rules yourself.

HOPE2Author

Level 7

Thanks, this is what I found out, but my question is about the mount which I calculated based on what you said and I did.

HOPE2Author

Level 7

Who can help me please from NEW JERSY!

sjrcpa

Level 15

The best way to know if you and the software are correct, and to learn, is to get the forms and instructions and fill it out manually.

The more I know the more I don’t know.

HOPE2Author

Level 7

For me it is enough that a tax prep from New Jersey just confirms : yes, and renters can get 18% of rent which they paid. Assume if I paid $36000 rent for 2022 in NEW JERSEY I can get 18% of $36000 ($6480) as tax liability relief that it is a huge deduction. Make sense?!

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