NJ Income Tax - Wages
If you are a New Jersey resident, wages you receive from all employers are subject to New Jersey income tax. Wages means income received for services rendered as an employee. Wages include salaries, tips, fees, commissions, bonuses, and any other compensation you receive from an employer, whether in cash, benefits, or property.
While most income regarded as wages for Federal income tax purposes is also considered wages for New Jersey purposes, you should be aware of certain differences. For example, unlike the Federal Government, New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) plans. New Jersey does not permit you to deduct moving expenses or employee business expenses from wages although you may exclude reimbursements for certain expenses included in wages on your W-2. The Federal designation of "statutory employee" has no meaning for New Jersey income tax purposes. If, under New Jersey law, an employer-employee relationship exists between you and the person or organization from whom you receive compensation, you are receiving wages and may not deduct business expenses from that income.
Because of these and other differences, be sure to use the amount shown in the "State Wages" box of the W-2 form you get from your employer when reporting wages on your New Jersey tax return. Also check your W-2 to confirm that "New Jersey" or "NJ" appears in the "State" box. The "State Wages" figure on W-2(s) you receive from employment outside New Jersey may need to be adjusted to reflect New Jersey tax law. Do not staple W-2 forms or anything else to your return but be sure to enclose the W-2s in the envelope with your return.
For additional information, view the section on Wages, Salaries, Tips, etc. in the New Jersey income tax return instruction booklet, NJ-1040, which can be viewed in Adobe Acrobat PDF format. PDF formatted documents contain the same text as the original printed documents. To view them you must have a PDF viewer which is available free from Adobe.
While most income regarded as wages for Federal income tax purposes is also considered wages for New Jersey purposes, you should be aware of certain differences. For example, unlike the Federal Government, New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) plans. New Jersey does not permit you to deduct moving expenses or employee business expenses from wages although you may exclude reimbursements for certain expenses included in wages on your W-2. The Federal designation of "statutory employee" has no meaning for New Jersey income tax purposes. If, under New Jersey law, an employer-employee relationship exists between you and the person or organization from whom you receive compensation, you are receiving wages and may not deduct business expenses from that income.
Because of these and other differences, be sure to use the amount shown in the "State Wages" box of the W-2 form you get from your employer when reporting wages on your New Jersey tax return. Also check your W-2 to confirm that "New Jersey" or "NJ" appears in the "State" box. The "State Wages" figure on W-2(s) you receive from employment outside New Jersey may need to be adjusted to reflect New Jersey tax law. Do not staple W-2 forms or anything else to your return but be sure to enclose the W-2s in the envelope with your return.
For additional information, view the section on Wages, Salaries, Tips, etc. in the New Jersey income tax return instruction booklet, NJ-1040, which can be viewed in Adobe Acrobat PDF format. PDF formatted documents contain the same text as the original printed documents. To view them you must have a PDF viewer which is available free from Adobe.
