NJ Tax code question (help me out!)

[Jet Moses]

OK, I'm doing my NJ state taxes and I come across this:

Property Tax Deduction/

Credit (Lines 36 and 48)

Eligible homeowners and tenants who

pay property taxes, either directly or

through rent, qualify for either a deduction

or a refundable credit.

The property tax deduction reduces your

taxable income. Therefore, the tax benefit

varies depending on the amount of your

taxable income, the amount of your property

taxes or rent, and your filing status.

To determine the actual tax benefit you

will receive (how much you will reduce

your tax liability) when claiming a property

tax deduction, you must calculate

your tax liability both with a deduction

and without a deduction. The property

tax credit reduces your tax due. The

credit increases the total payments and/or

credits on Line 53, Form NJ-1040. These

payments and/or credits are subtracted

directly from your tax liability. Taxpayers

who do not reduce their tax liability by

$50 or more ($25 if filing status is married/

CU partner, filing separate return

and you maintain the same residence as

your spouse/civil union partner) when

claiming the property tax deduction

should claim the property tax credit

instead.

If I'm understanding this correctly, even though I'm a tenant paying rent and I do not actually own the house I live in, I can still deduct the property tax that my landlord (the owner) pays?

[Bob]

That's what it sounds like. The question is, how much of your rent can be attributed to the taxes?

[RSJ]

I would think it means if you pay rent - but then pay the property taxes above your rent directly to your local district or to your landlord. I would read my lease because most likely the landlord is not attributing any of your rent to his property tax or else he would not be able to take the deduction himself.

[Bob]

I would think it means if you pay rent - but then pay the property taxes above your rent directly to your local district. I would read my lease because most likely the landlord is not attributing any of your rent to his property tax or else he would not be able to take the deduction himself.

That's probably the real answer, right there. You KNOW he's taking the deduction. New Jersey isn't going to let both of you have it.

[Jet Moses]

I would think it means if you pay rent - but then pay the property taxes above your rent directly to your local district or to your landlord. I would read my lease because most likely the landlord is not attributing any of your rent to his property tax or else he would not be able to take the deduction himself.

That's probably the real answer, right there. You KNOW he's taking the deduction. New Jersey isn't going to let both of you have it.

Yeah, that's what I thought. Thanks guys!

I'm perusing the homestead rebate thing (for tenants only) and it looks like a seperate thing from the 1040. I don't see any where to find out what the rebate is (if any).

[Green DNA]

Of course there is always the ignorance angle. Take the deduction and then if you ever get nailed, just claim that you assumed part of every check went to paying insurance and taxes.

[dickkotite]

Of course there is always the ignorance angle. Take the deduction and then if you ever get nailed, just claim that you assumed part of every check went to paying insurance and taxes.

i wouldnt do that. I wouldnt mess around.

yea, I doubt NJ will allow both parties to deduct for property taxes. Im also sure the owner wants every cent he is entitled to.

Ill bet they put that in there for special case scenarios which are extremely rare. they shpouldnt even put that confusing garbage in. One thing I sure dont miss: state taxes. Not so much even paying them as much as the hassle of doing them

[Jet Moses]

Ill bet they put that in there for special case scenarios which are extremely rare. they shpouldnt even put that confusing garbage in. One thing I sure dont miss: state taxes. Not so much even paying them as much as the hassle of doing them

I heard that, brotha!