In-State Tuition and 529 Contributions are now tax deductible in New Jersey!
New in 2022 New Jersey became the 35th state to offer a tax deduction for 529 college saving contributions. NJ taxpayers can deduct up to $10,000 per year ($20,000 per married couple) from state taxable income.
To qualify, taxpayers must contribute to NJ’s 529 plan (NJ BEST) and have a household income of less than $200,000.
NJ GRANDPARENTS: Trying to stay under the NJ income limit to qualify for the NJ state property tax freeze? Reduce your taxable income by contributing to a 529 plan for a grandchild.
ALSO Added in 2022: up to a $10,000 NJ state income tax deduction for in-state college tuition payments. The same household income limit of $200,000 applies.