New Jersey Tax Division Clarifies Nontaxable Investment Income in GIT-5 Guidance

The New Jersey Division of Taxation has published guidance explaining the treatment of nontaxable investment income for New Jersey income tax purposes. The guidance clarifies that while most investment income is taxable in New Jersey, certain types are exempt including interest from New Jersey and federal government debt obligations, distributions from qualified New Jersey investment funds, earnings from qualified state tuition programs such as the New Jersey Better Educational Savings Trust program, and earnings from qualified Achieving a Better Life Experience accounts, with specific reporting requirements outlined for both residents and nonresidents. [N.J. Div. of Tax’n, Gross Income Tax Bulletin ...