What If Your Employer Is In Ny And You Perform Services Out Of State
The same holds true if your employer sends you to work in another state. For example, if youre a New York sales associate whos assigned to Connecticut as your territory. Again, you should consider where your checks are coming from. It may be advantageous for you to allocate a certain portion of your income to another state, especially if the other state has a lower tax rate, but that can also make filing more complicated, as youd have to file in New Jersey , New York , and that third state .
For those whose companies assign them to clients in other cities or who must set up a temporary work base in other cities, you may have to pay taxes in those states, depending on the amount earned. Check with your employer to determine where they are withholding taxes and with a tax professional to determine whether taxes may be due in the state that you worked, advises Engel.
Need More Time To File State Taxes
If NJ taxpayers file their returns late, New Jersey charges a fee of 5% of the tax owed. When the tax due is not paid in full by the date the return must be filed, there is a 25% penalty fee. The Division of Taxation may also assess a penalty of $100 per month.
Residents who need more time to file New Jersey taxes must use Form NJ-630 to request an extension. If money is owed, 80% of it must be paid by the April due date to qualify for an extension.
Misplacing A Sales Tax Exemption/resale Certificate
New Jersey sales tax exemption and resale certificates are worth far more than the paper theyre written on. If youre audited and cannot validate an exempt transaction, the New Jersey Division of Taxation may hold you responsible for the uncollected sales tax. In some cases, late fees and interest will be applied and can result in large, unexpected bills.
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Nj Streamlined Business Reinstatement And Dissolution Program
On December 10, the New Jersey Department of Treasury announced a new program designed to help those that are in revoke status due to lack of compliance with State administrative reporting requirements. The program will allow certain revoked businesses to fully reinstate or dissolve.
The Departments Division of Revenue and Enterprise Services will provide an online self-service reinstatement and dissolution process from March 1, 2020 through June 15, 2020. In order to participate, there will a one-time administrative fee of $500 plus a convenience or credit card processing fee. In addition, the taxpayer will need to attest that the business has satisfied any known State tax obligations, negating the need for a tax clearance certificates or full annual report details.
According to the Department, the benefits of the program include a fully automated filing process with no additional forms, one business day reinstatement or dissolution, definitive closure for entities dissolving, and lower costs for companies with significant outstanding back-year fees due.
New Jersey Division Statute Of Limitations Extensions
Under New Jerseys State of Emergency, the statute of limitations for assessments and refund claims has been extended. The extension to file a claim for refund or credit for all taxes administered by the Division has been extended until January 1, 2022 . The extension of the statute of limitations applies to all refund claims where the statute of limitations was originally set to expire on or after March 9, 2020 and before January 1, 2022. Likewise the statute of limitations for assessments which were scheduled to expire after April 14, 2020 have also been extended to January 1, 2022 New Jersey Treasury Refund or Credit
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Heres When You Can Begin Filing Federal Tax Returns And Why The Irs Says It May Be Frustrating
IRS Form 1040 for 2020 taxes.IRS
U.S. taxpayers can begin filing their 2021 tax returns on Jan. 24, the Internal Revenue Service said Monday.
Between now and then, the agency plans to do more programming and testing to ensure it can process the returns and ensure taxpayers receive the remaining coronavirus stimulus funds they are owed.
But the Treasury Department, of which IRS is a part, warned that years of budget cuts, outdated technology, and fewer employees at taxpayer assistance centers will make for a frustrating filing season for taxpayers and tax preparers and a backlog of processing returns, the inability for the IRS to answer the phones and respond to taxpayer questions efficiently, and a lower quality of service.
The deadline for filing returns was extended to Monday, April 18, this year, because the normal date, April 15, is the observance of Emancipation Day in the District of Columbia.
Emancipation Day, which celebrates the end of slavery in the nations capital, normally occurs on April 16, but because thats a Saturday this year, it will be celebrated on the Friday before. And since taxes arent due on a weekend, that pushes the deadline back to the following Monday.
New Jersey taxpayers will get three more days to file their state income tax returns as well. The state deadline is being pushed back to match the federal filing date.
The stimulus law also provided $1,400 checks for most Americans.
New Jersey Governor Vetoes Gaming Small Business Tax Relief Bills
On November 8, 2021, New Jersey Gov. Phil Murphy vetoed two bills. The first bill vetoed was A.B.4002 which would have allowed a deduction of promotional gaming credits from sports wagering gross revenue due to the gaming credit being too broad. The second bill vetoed was S.B.2347 which allows certain small business with 10 or fewer employees to defer taxes payments due to the impact of Covid-19. Murphy rejected this bill because of the passed deadline for the proposed small business program, and this bill would allow the small business owners to retain the tax payments which employees and consumers believed would have been paid timely on their behalf.
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How To Collect Sales Tax In New Jersey
If the seller has an in-state location in the state of New Jersey, they are legally required to collect sales tax at 7%, as New Jersey doesn’t have any local taxes, just a statewide sales tax.If the seller’s location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge 7%.
New Jersey Ranks Third In The Nation For Its State And Local Tax Burden According To The Tax Foundation
But the Garden State offers tax credits and deductions to help offset the tax burden on residents including a generous property tax deduction.
If you pay New Jersey state tax, its important to know about this and other tax deductions and credits you may qualify for, as well as when you need to file. Well cover those topics and more in this quick guide.
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New Jersey Announces Conformity To Federal Coronavirus Distribution Rules
The New Jersey Division of Taxation announced the State will follow federal guidelines and timeframes for coronavirus-related distributions for qualified individuals. If the repayment ofCRD qualifies as a tax-free rollover for federal tax purposes, the New Jersey will recognize a CRD as a tax-free rollover. Taxpayers should report these distributions in the same manner as they are required to do for federal purposes. The repayment will qualify for favorable treatment when it qualifies for that treatment for federal purposes. Taxpayers may file amended returns to exclude CRD income originally reported and taxed and receive a refund.
New Jersey Provides Grant For Businesses Impacted By Hurricane Henri/ida
The New Jersey Henri/Ida Business Assistance Program will provide $1,000 up to $5,000 to assist businesses and nonprofit organizations that suffered physical damage from either or both hurricanes. The following eligibility requirements must be met to apply for the program:
- Businesses and nonprofits with up to 50 full-time employees based on their Q2 2021 recent New Jersey WR-30 filing with the New Jersey Department of Labor.
- Damage or loss of revenue greater than $1,000 due to Hurricane Henry/Ida.
- Physical commercial location in the State .
- Registered to do business in the State at time of application.
- There are no outstanding tax debts or liabilities due to the State.
- The business or nonprofit is in Good Standing at the time of application with the NJ Department of Labor and Workforce Development and, if applicable, the New Jersey Department of Human Services and the New Jersey Division of Alcoholic Beverage Control.
In addition, the CEO or equivalent officer of either a business or nonprofit must certify that the entity was in operation on August 1, 2021, and incurred physical damage from Hurricane Henri on August 22ndor 23rd, 2021, or Hurricane Ida on September 1st, 2nd, or 3rd, 2021. These grants may be used only to pay for August rent or mortgage payment. However, the grant may not be used for capital expenses, remediation, or construction. Applicants may apply from Friday, September 17, 2021, through Friday, September 24, 2021.
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Annual Filing Requirements For A New Jersey Llc
A New Jersey LLC must prepare and file the following documents at the state level:
- A New Jersey limited liability company must file an annual report online through the DOR’s annual report website.
- To access the online annual return form, you must enter your LLC’s entity number and the date of organization.
- The annual report requires very little information, such as the address of the registered office and the name of the statutory agent.
- You must pay a filing fee of $50.
State Business Tax:
For the purpose of federal income tax, an LLC is treated as a pass-through entity. Therefore, the company does not pay any taxes the individual members are responsible for reporting the business income in their personal tax returns. Although some states levy a separate tax on limited liability companies for allowing them to do business in the state, New Jersey does not have any such tax for LLCs.
However, sometimes, LLC owners choose to have a tax treatment such as a corporation by filing Form 2553 with the Internal Revenue Service. In such cases, the LLC must file a separate tax return. Many states, including New Jersey, levy a state-level income tax on corporations. In New Jersey, this tax is known as Corporation Business Tax . If you have chosen to pay income tax as a corporation, you must pay the corporation business tax.
State Employer Taxes:
Do You Work In New York City
If you commute from NJ to NYC for work, you should keep in mind that as a non-resident of New York, you wont be required to pay the city tax.
Its important that your employer knows youre not a resident of the city so that additional taxes are not being withheld from your paychecks.
Its also good to keep in mind that New York tax rates are higher than New Jersey tax rates. Therefore, if youre thinking of moving closer to your job, you may want to think twice about it. Moving from New Jersey to New York City means youll face a city tax and end up paying higher tax rates in general.
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Taxable And Exempt Shipping Charges
New Jersey sales tax may apply to charges for shipping, delivery, freight, handling, and postage.
The taxation of shipping and handling charges in New Jersey has changed more than once. As of October 1, 2005, handling charges are included in the definition of delivery charges. From October 1, 2005, through September 30, 2006, shipping and handling charges imposed by the seller were exempt whether separately stated or included in the sales price.
However, the exemption for delivery charges imposed by the seller was repealed for taxable goods and services as of October 1, 2006. Charges by a seller to a customer for the delivery of taxable goods and services in New Jersey, which includes transportation, shipping, postage, handling, crating, packing, etc., are generally taxable even if separately stated on the bill. Charges to deliver exempt goods and services are generally exempt.
For shipments including both taxable and exempt property, sellers should allocate the delivery charge based on either the total sales price or total rate, and collect tax on the portion of the delivery charge allocated to the taxable goods. If delivery charges arent allocated, the entire delivery charge is taxable.
For additional information, see the New Jersey Division of Taxation Sales Tax Guide.
New Jersey Updates Explanation Of Loans And Grants
The New Jersey Division of Taxation has advisedthat any payments the Small Business Administration makes for principal, interest, and fees are considered to be cancellation of debt. This is because the payments all reduce the amount of the loan in some way. This is true whether the payment is made for a loan in deferment or not in deferment.For gross income tax purposes, cancellation of debt or forgiveness of debt income is not subject to tax and should not be reported on an individual income tax return. For corporation business tax purposes, COD income is taxable when it is subject to tax for federal purposes.
May 21, 2021
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New Jersey Executive Order 275 Impact On Tax Deadlines
New Jersey Governor, Phil Murphy, signed executive order 275 into effect on November 23rd, 2021. EO-275 further extends the deadline for filing claims for a refund or credit under the Sales and Use Tax Act, the Gross Income Tax Act, and the State Uniform Tax Procedure Law from January 1st, 2022, to April 1st, 2022. The extension is only available if the original deadline for filing was on or after March 9, 2020, and before April 1, 2022. Prior to EO-275, executive order 170 was in effect, extending the statutory deadline to January 1st, 2022, unless revoked or modified.
New Jersey Undertaking Corporation Business Tax Combined Reporting Initiative
The New Jersey Division of Taxation is in the process of identifying companies that have been included as part of a combined group filing and indicated that they havenexuswith New Jersey, but have not filed as a separate entity for periods prior to 2019. Beginning June 15, 2021, and running through October 15, 2021, companies that have had nexus with New Jersey prior to filing as part of combined return will have the opportunity to come forward and voluntarily comply with their Corporation Business Tax filing requirements. These companies are not eligible for a standard Voluntary Disclosure Agreement however, the Division will consider entering into aClosing Agreementwith approved companies based upon the following:
Failure to take advantage of this initiative will result in the look-back period going beyond return periods ending after June 30, 2016, as well as all applicable penalties and interest being assessed. For more information, please visit the New Jersey Division of Taxation websiteand/or email questions and requests for disclosure to the Nexus Audit Group atusing Combined Reporting Initiative as the subject line.
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Tax Bill Passed By Assembly And Senate
New Jersey just updated their guidance on their website that the tax bill was passed by the Assembly and Senate this afternoon and the Governor intends to sign tomorrow.
Gross Income Tax, Partnership, and Corporation Business Tax will be extended until July 15, 2020, to file returns and make applicable tax payments. Penalties and interest for these returns and payments will not be imposed until after July 15. Please note this includes 1st quarter 2020 estimated tax payments. All other returns and payments are due on their original due date.
Please see the due date chartsposted on the NJ Division of Taxation website.
Filing Your New Jersey Sales Tax Returns Online
New Jersey supports electronic filing of sales tax returns, which is often much faster than filing via mail.
New Jersey allows businesses to make sales tax payments electronically via the internet.
You can process your required sales tax filings and payments online using the official New Jersey On-line Services Filing and Payment Services website, which can be found here . You should have received credentials to access your New Jersey On-line Services Filing and Payment Services account when you applied for your New Jersey sales tax license.
Simplify New Jersey sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process.
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Failure To File Penalty
Concerning taxes owed, there are two penalties that a taxpayer should know. The first is the failure to file penalty. NJ state will assess this penalty when the taxpayer fails to file their tax return by the due date, including extensions. The failure to file penalty is 5% of the tax owed for each month the tax return is late. The maximum penalty for late filing is 25% of the balance due. Further, the Division has the power to charge a penalty of $100 for each month the return is late.
State Resources To Help You File Your Return
New Jersey knows that filing a sales tax return can be hard, so they provide resources to business owners to help teach you how to file. Weve done the work for you and compiled a list of helpful links, videos and resources to make filing your first sales tax return easier.
New Jersey state information:
- State Worksheet for sales tax form ST50
New or first-time filers:
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