New Jersey allows a $1,000 exemption for each of your dependents who is attending an accredited college or postsecondary institution. To qualify for this exemption, you must provide at least one-half of the tuition and maintenance costs for the dependent. Do not count financial aid received by your dependent when calculating your costs. In addition, the dependent must be under 22 years of age at the end of the tax year and attending a college or postsecondary institution on a full-time basis. Whether or not your dependent is attending full time is determined by the institution. The dependent must also spend at least some part of each of five calendar months of the tax year at school. The educational institution must have a regular faculty and curriculum and have a body of students in attendance.

This exemption is in addition to the $1,500 exemption you may claim for each qualified dependent. The exemption may not be claimed for you, your spouse/civil union partner, or your domestic partner. It applies only to your dependents.

Remember, part-year residents must always prorate exemptions for the portion of the year they lived in New Jersey.