![]() ![]() If the nonresident individual is going to be taxed at a higher rate than their financial circumstances would require if they filed individually, the individual can file a nonresident return (Form NJ-1040NR).įor more information, see the instructions for the New Jersey Composite Return (Form NJ-1080C) or the New Jersey Nonresident Return (Form NJ-1040NR). Participation in a composite return is elective. Note: For Tax Year 2017, the highest tax rate was 8.97%. Therefore, the composite return, Form NJ-1080C, uses the highest tax bracket of 10.75%. Since a composite return is a combination of various individuals, various rates cannot be assessed. That amount will be taxed at a higher rate. ![]() Taking your total income (60,000) and subtracting the first income tax bracket (53,359), you have 6,641 of unaccounted-for income remaining. New Jersey has a graduated Income Tax rate, which means it imposes a higher tax rate the higher the income. Calculating the federal tax bill Based on the updated 2023 federal tax rates, the first 53,359 of your income is taxed at 15, which works out to 8,003.85. Technically, it is an individual return that each nonresident income earner must file, except that it is a composite filing of all the individual returns on one form. Tax Rate for Nonresident Composite Return (Form NJ-1080C)Ī composite return is a group filing. For example, assume a hypothetical taxpayer who is married with 150,000 of joint income in 2024 and claiming the standard deduction of 29,200. Use the correct schedule for your filing status. Last law to change rates was the Tax Reform Act of 1986. You must use the New Jersey Tax Rate Schedules if your New Jersey taxable income is $100,000 or more. Tax Rate Schedules (2017 and Prior Returns) Tax Rate Schedules (2020 and After Returns) When using the tax table, use the correct column. For all individuals who are retired from the federal government, the Commonwealth of Kentucky, or a Kentucky. ![]() If your New Jersey taxable income is less than $100,000, you can use the New Jersey Tax Table or New Jersey Rate Schedules. Schedule P, Kentucky Pension Income Exclusion. ![]()
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