Division of TaxationFor Tax Years 2025 through 2028, under the there are new federal income tax deductions for senior citizens, overtime, and tips. However, the ³Ô¹ÏºÚÁÏ Gross Income Tax (GIT) has defined categories of income and deductions and is not computed based on federal adjusted gross income. Therefore, federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's ³Ô¹ÏºÚÁÏ Individual Income Tax return (Form NJ-1040, NJ-1040NR, or NJ-1041).
For information on ³Ô¹ÏºÚÁÏ exemptions and deductions see the Division's Exemptions and Deductions webpage.