New Jersey Tax Division Clarifies Taxability of Difficulty of Care Payments

The New Jersey Division of Taxation published a document clarifying that difficulty of care payments are not subject to the New Jersey Gross Income Tax. This announcement confirms that these payments have been recognized as non-taxable since 2014, if they were excluded from federal taxable income under the same conditions, and this clarification is now officially included in the 2024 NJ-1040 gross income tax instructions. [N.J. Div. of Tax’n, Clarification on Difficulty of Care Payments and Tax Exemption, 01/31/25]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.