Increases age of dependent for whom gross income tax exemption for higher education expenses may be claimed from under 22 years to under 27 years.
Impact
The proposed change will enable taxpayers to claim a gross income tax deduction of $1,000 for each qualified dependent attending an accredited institution of higher education on a full-time basis. This adjustment, which updates age limits that have not changed since 1976, aims to reflect contemporary educational trends and the financial burdens faced by families. As a result, more families may be eligible for tax relief, potentially reducing their overall financial burden while encouraging higher education enrollment.
Summary
Senate Bill 2763, introduced in June 2022, proposes an amendment to New Jersey's gross income tax policy by increasing the age eligible for a dependent exemption for higher education expenses from under 22 to under 27 years. This move aims to provide greater financial relief to families supporting students in post-secondary education. It acknowledges the extended duration of education and the increasing ages at which dependents often transition to adulthood, given the complexities of modern academic paths.
Contention
While this bill has garnered support from various legislators, the implications of such tax adjustments may generate discussions on budget allocations and state revenue. Critics may voice concerns about the potential impact on state funding for educational institutions or other public services, while supporters argue that the bill aids in easing the financial strain on families seeking to provide higher education opportunities for their dependents.
Same As
Increases age of dependent for whom gross income tax exemption for higher education expenses may be claimed from under 22 years to under 25 years.
Consolidates all categories of gross income for cross-claiming of net losses and allows 20 year loss carryforward under New Jersey gross income tax; repeals alternate business income calculation.
AN ACT relating to the use of Hathaway scholarships at private post secondary institutions; defining terms; creating a scholarship; establishing eligibility requirements; establishing payment of scholarship funds to private post secondary institutions; specifying success curriculum requirements; modifying the duties of the department of education; providing a sunset date; requiring rulemaking; requiring reporting; making conforming amendments; and providing for an effective date.
Relating to measures to support the enrollment of students with a nontraditional secondary education at public institutions of higher education, including eligibility for certain student financial assistance programs.