Knowledge and Insights
A Tax Deduction for Charitable Giving for NJ?
By: IsabelNew Jersey taxpayers may see a deduction for charitable giving for 2019 on the NJ-1040! On March 25, 2019, the Senate voted in favor of Bill No. S2179 that would allow a charitable deduction for individual taxpayers for contributions made to qualified New Jersey-based charitable organizations. Creating this tax write-off for New Jersey residents could be good news for New Jersey nonprofits that may have experienced a decrease in individual gifting due to the changes in the federal tax laws in 2017. Will this potential legislation encourage New Jerseyans to be more generous in the future? Only time will tell the outcome, which hinges upon the fate of the Bill in the Assembly. Proponents of the Bill’s passage cite that more than a dozen states allow the deduction, including New York and Delaware. Opponents of the Bill estimate the cost to the annual budget at $365 million.
