New Jersey Tax Division Issues Updated Information on Income Tax Deductions, Student Loans, Tuition Cost

The New Jersey Division of Taxation Dec. 4 issued updated information on college and tuition assistance, for individual income tax purposes. Before tax year 2022, contributions to 529 plans weren’t deductible, but the money grew tax-free if used for qualified educational expenses. A rollover from one account to another was considered a qualified distribution if it met certain requirements under the Internal Revenue Code. For tax year 2022 and forward, the New Jersey College Affordability Act allows for three deductions for taxpayers who file tax returns showing gross income of $200,000 or less. These deductions include contributions to a New ...