The State of New Jersey’s Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) property tax relief program officially opened for 2024 in August.  Payments for eligible homeowners and renters began going out on a rolling basis in mid-October; however, just a short time later, the State pulled the ANCHOR benefit payments from some taxpayers’ accounts, due to possible fraud.

From August 26 to September 4, 2023, the State of New Jersey will be holding a Sales Tax Holiday on certain items sold to individual purchasers for non-business use. The tax holiday will waive the 6.625% sales tax on a long list of eligible items, many of which are needed by parents and children for the upcoming school year.

The push towards renewable energy has been a priority of President Biden’s since taking office. Not only is it seen as a way to proactively manage climate change, but it ensures the United States remains a global leader in clean energy technology, manufacturing, innovation, and production. In fact, there have been several parcels of legislation, including the Inflation Reduction Act, which offer lucrative incentives for clean energy investments.

The Tax Cuts and Jobs Act of 2017 made several favorable tax changes that provided meaningful benefits to businesses. Unfortunately, there were also changes that had an adverse impact on the same taxpayers. One important example is the $10,000 cap on the deduction for state and local taxes. Unfortunately, this modification created tax complications for owners of S-corporations, partnerships, and other pass-through entities. Essentially, it forced more of the tax burden on the individual tax returns of owners.

In June 2022, New Jersey Governor Phil Murphy signed the Fiscal Year 2023 Appropriations Act, also known as the State’s budget for the coming fiscal year.  One highlight of the budget is the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program (ANCHOR).  This program replaces the Homestead Benefit program and will provide relief to double the number of homeowners and also include renters, which the previous program did not.

In a memorandum released in September 2022, the IRS has confirmed that if a PPP loan was forgiven based on misrepresentations or omissions by the taxpayer, the taxpayer is not eligible to exclude the forgiven amount from income.  Any portion of the loan proceeds that were forgiven in error must be included in their gross income. 

On June 30, 2022, after passage by the State Senate, New Jersey Governor Phil Murphy signed the Fiscal Year 2023 Appropriations Act, also known as the State’s budget for the coming fiscal year.  At $50.6 billion, it is the largest budget in the State’s history and includes a record $6.8 billion surplus.

On January 28, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.

Businesses have been on a roller coaster these past two years. In addition to managing the economic fallout from COVID-19, legislators passed dozens of tax laws and stimulus packages that required management to make important financial decisions on the fly. So, as we enter the 2022 tax filing season, let’s recap the various COVID-19 relief packages and how some of the provisions could impact the preparation and filing of your business taxes.

Small businesses are an essential part of New Jersey’s economy, providing needed products and services and creating important employment opportunities. The Garden State ranks 11th in the number of small businesses within its borders, totaling just under 908,000 enterprises. In fact, 99.6% of companies located within the state are small businesses, accounting for 49% of the overall employment. Those with 20 employees or less constitute the largest share of small business employment of these companies.