How to File Your New Jersey Tax Return for 2018: Step-by-Step Guide for Individuals and Small Businesses

Filing your New Jersey tax return for 2018 may seem overwhelming initially, but the process is easier to manage once you understand the steps. Whether you are an individual filer, a small business owner, or preparing a joint return, this guide will walk you through the requirements and help you avoid common mistakes. Filing on time ensures compliance and enables you to claim any credits or deductions you are entitled to.

New Jersey requires residents and certain nonresidents to submit their income tax returns each year. The filing deadline for the 2018 tax year matched the federal tax return deadline of April 15, 2019. If you paid estimated tax payments, had taxes withheld from your employer, or expect a refund, filing is the only way to reconcile your account with the Treasury Division. Understanding what forms to file and what information you need will save time and money during the tax filing.

This article provides a clear, step-by-step explanation of how to complete your New Jersey tax return for 2018. It covers everything from gathering forms and receipts to submitting your return electronically or by mail. By following these instructions, you will know how to prepare your taxes, work with a tax preparer, track your refund status, and secure payments through your bank or other financial institution. The goal is to make tax return preparation simple and accessible, even if this is your first time filing.

Overview of New Jersey State Income Tax for 2018

Filing a New Jersey tax return depends on your income, residency status, and whether you qualify for certain credits or deductions. For the 2018 tax year, the deadline to file was April 15, 2019, the same date as the federal tax return. Even if you did not owe money, filing ensured that you could claim a refund, apply credits, or reconcile any estimated tax payments.

Who Needs to File

You must file a New Jersey income tax return if your gross income exceeded the following thresholds in 2018:

Single filers: $10,000
Married filing separately: $10,000
Married filing jointly: $20,000
Head of household: $20,000
Qualifying widow(er) or surviving civil union partner: $20,000

In addition, you should file if:

You had New Jersey income tax withheld and expect a refund.
You made estimated tax payments during the year.
You are eligible for the New Jersey Earned Income Tax Credit or other credits.

Key Changes for 2018

Several updates affected the way taxpayers completed their returns for this year:

Retirement income exclusion: Increased to $60,000, up from $40,000 in 2017.
Earned Income Tax Credit: Raised to 37 percent of the federal earned income credit.
Property tax deduction: Increased from $10,000 to $15,000.
New credits were introduced: the Child and Dependent Care Credit and the Wounded Warrior Caregivers Credit.

These adjustments enabled many households to reduce their tax liability or increase the size of their refunds. Knowing which changes applied to your situation was essential in the tax filing process.

Forms You’ll Need

When preparing your New Jersey tax return for 2018, it is essential to complete the correct forms. The primary form is the NJ-1040, but additional schedules and supporting forms may also be required depending on your situation. Using the correct paperwork ensures your return is processed accurately and you can track your refund status immediately.

Primary Form

The NJ-1040 is the New Jersey Resident Income Tax Return, and it must be filed by every full-year resident to report income, claim deductions, and calculate whether they owe taxes or qualify for a refund.

Supporting Forms and Schedules

The Schedule NJ-DOP reports gains from the sale or disposition of property, ensuring that profits from real estate or other property sales are taxed adequately at the state level.
The Schedule NJ-BUS-1 must be completed by anyone reporting income from a sole proprietorship, since it provides a way to list business income and expenses separately from wages.
The Schedule NJ-COJ allows you to claim a credit for taxes paid to other states or jurisdictions, which prevents double taxation on the same income.
The Form NJ-1040-V is a payment voucher that must be included if you are mailing a payment with your return. This ensures that the payment is credited to the correct account.
The Form NJ-630 is used when you need extra time to file your tax return, although it only extends the filing deadline and not the deadline for paying taxes owed.
The Form NJ-1040-HW is an application for the Property Tax Credit and the Wounded Warrior Caregivers Credit, and it should be filed by anyone eligible to claim these benefits.
The Form NJ-2450 requests a refund if you made excess contributions to unemployment, disability, or family leave insurance programs during the year.

Step-by-Step Guide to Completing Your Return

Completing your New Jersey tax return for 2018 involves several essential steps. Following them in order helps ensure accuracy and reduces the chance of errors that could delay your refund or result in a balance due.

Step 1: Gather Required Documents

You should collect all W-2 forms from your employers. These documents show both your wages and the state taxes withheld.
You must gather all 1099 forms for interest, dividends, and other income sources because the state requires them to be reported.
If you are self-employed, you should keep records of business income and expenses, as these are necessary for completing Schedule NJ-BUS-1.
You need property tax receipts if you plan to claim the property tax deduction on your return.
You should include records of estimated tax payments made during 2018 so that they are correctly credited to your account.
You must have Social Security numbers for yourself, your spouse, and any dependents to avoid processing delays.
Keep a copy of your previous tax years for reference, as they may help with consistency and accuracy in reporting.

Step 2: Enter Personal Information

You must provide your full legal name, Social Security number, and address.
You should include the correct county or municipality code from the state’s instruction booklet, since this code is required for accurate processing.

Step 3: Choose a Filing Status

You should select the same filing status used on your federal tax return, whether it is single, married filing jointly, married filing separately, head of household, or qualifying widow(er).

Step 4: Claim Exemptions

If you are filing jointly, you can claim $1,000 for yourself and an additional $1,000 for your spouse.
You may claim an additional $1,000 if you were 65 or older at the end of 2018.
You can also claim an additional $1,000 exemption if you are blind or disabled.
Veterans who were honorably discharged may claim a $3,000 exemption.
You may claim $1,500 for each dependent child listed on your return.
You may claim $1,500 for each other dependent in your household.
You can claim an additional $1,000 exemption for each dependent under 22 enrolled full-time in college in 2018.

Step 5: Report Your Income

You must report your wages using the state wage amount from Box 16 of your W-2 form, rather than the federal wage amount listed in Box 1.
You must report taxable interest from bank accounts, bonds, or other financial instruments.
You should also report tax-exempt interest, since it may affect other calculations on your return.
You must report dividend income from stocks or mutual funds.
You should complete Schedule NJ-BUS-1 if you have business profits from self-employment.
You must complete Schedule NJ-DOP to see if you have made capital gains from selling property or other investments.

Step 6: Apply Deductions and Credits

You may deduct up to $15,000 in property taxes paid on your primary home during 2018.
You may exclude up to $60,000 of qualifying pension or retirement income if you meet the requirements.
If you qualify, you should claim the Earned Income Tax Credit, the Child and Dependent Care Credit, and the Wounded Warrior Caregivers Credit.
You should complete Schedule NJ-COJ to claim credit for taxes paid to another state, which prevents you from being taxed twice on the same income.

Step 7: Calculate Your Tax

You must use the New Jersey tax tables or rate schedules to calculate your tax liability.
To determine your final balance, subtract any deductions, credits, and payments you have already made through withholding or estimated payments.
Once these calculations are complete, you will know whether you owe additional taxes or are eligible for a refund.

Filing Options

New Jersey residents can file their returns electronically or on paper. Electronic filing is strongly encouraged because it is faster, more secure, and generally results in a refund being issued sooner.

Electronic Filing

The NJ Online Filing system is a free service that allows residents to file their return electronically without paying additional fees.
The NJ E-File system is available through commercial tax preparation software or with the help of a tax preparer, who can provide professional support for those who prefer expert assistance.
Filing electronically reduces the chance of errors, provides quicker access to your account, and shortens the time it takes to receive a refund compared to mailing your return.

Paper Filing

If you are due a refund or have no balance, mail your return to the State of New Jersey, Division of Taxation, Revenue Processing Center – Refunds, PO Box 555, Trenton, NJ 08647-0555.
If you owe money with your return, you must mail your return and payment to the State of New Jersey, Division of Taxation, Revenue Processing Center – Payments, PO Box 111, Trenton, NJ 08645-0111.
When mailing a payment, you should always include Form NJ-1040-V. This voucher ensures that your payment is applied correctly to your account.

Making Payments

You have several payment options if you owe taxes after completing your New Jersey tax return 2018. The state allows electronic and paper-based methods, so you can choose the one that best fits your needs.

Online Payment Options

You may use the Individual Income Tax Payment and Inquiry system on the New Jersey Tax Portal to pay directly from your bank account by electronic check. This option avoids mailing delays and ensures that your payment is processed quickly.
You can also pay by credit card through the state’s authorized vendors. While this option provides convenience, it does include processing fees charged by the financial institution handling the transaction.
Payments made online are posted to your account faster than checks sent by mail, reducing the risk of late fees or penalties.

Payment by Check or Money Order

If you prefer paper payments, mail a check or money order payable to “State of New Jersey—TGI.” This method is slower than electronic payment, but it is still acceptable to include the correct voucher.
You should write your Social Security number, the tax year (2018), and the form number (NJ-1040) on the check or money order. This step ensures that the treasury division can properly apply your payment.
When mailing a payment, you must include Form NJ-1040-V, a voucher linking the amount sent to your account.

Payment Deadlines

All payments must be submitted electronically or postmarked by April 15, 2019, to avoid penalties and interest.
If you filed for an extension using Form NJ-630, you must still pay at least 80 percent of your tax liability by the original due date. Paying less than this amount will result in additional charges.

Tracking Refunds and Balances

After you file your New Jersey tax return 2018, you should track your refund status or confirm if you still owe money. The Division of Taxation offers several ways to check your account.

Refund Status

You can check the status of your refund online using the New Jersey Tax Portal. This tool requires you to enter identifying information such as your Social Security number and refund amount.
You may also call the automated phone system at 1-800-323-4400 or 609-826-4400 to receive an update on your refund. The phone system provides information without the need to speak to a representative.
If you want personal assistance, you can contact the customer service center at 609-292-6400. A representative can provide updates and help with simple questions about your return.

Processing Times

Refunds from electronically filed returns are usually processed faster than refunds from paper returns. Refunds for e-filed returns are often available within a few weeks.
Refunds from paper returns can take longer, since they must be manually entered and reviewed before processing.

Balance Due Inquiries

If you owe money, the Division of Taxation will mail you a billing notice explaining the amount due, the payment deadline, and any applicable interest or penalties.
You may contact the customer service center if you have questions about your balance or need to request more time to pay.

Common Mistakes to Avoid

Filing errors are among the most common reasons for delayed refunds or notices of additional tax owed. Taking the time to double-check your return can save you money and frustration.

Many taxpayers make the mistake of using federal wages from Box 1 of the W-2 form instead of state wages from Box 16. Using the wrong figure will cause your income tax to be miscalculated.
Some filers forget to sign and date their returns. An unsigned return is considered incomplete and will not be processed until corrected.
Taxpayers sometimes attach their W-2s and 1099s directly to the return. Instead, these forms should be enclosed but not stapled or clipped to the NJ-1040.
Errors occur when individuals attempt to report net losses. You cannot report a net loss in New Jersey in most categories; you must leave the line blank instead.
Another frequent mistake is entering dollar signs, commas, or dashes when filling in amounts. The Division of Taxation requires that numbers be entered as plain figures without symbols.

By avoiding these common errors, you can help ensure that your return is processed smoothly and that you receive your refund without unnecessary delays.

Final Filing Checklist

Before you submit your New Jersey tax return, it is a good idea to go through a checklist to ensure nothing is missing. Taking a few minutes to confirm each item will help you avoid processing delays, notices from the Division of Taxation, or a longer wait for your refund.

You should confirm that your NJ-1040 form is fully completed, with all required lines filled in and calculations double-checked.
You should enclose all W-2 and 1099 forms in the envelope, but do not staple or attach them to your return.
If applicable to your situation, you should include any required schedules, such as NJ-DOP, NJ-BUS-1, or NJ-COJ.
You should verify that proof of any estimated tax payments made during 2018 is enclosed, since these payments reduce your balance due.
If you owe taxes, you should select a payment method and confirm that the correct amount has been prepared for submission.
You should use the correct mailing address, whether you expect a refund or need to send a payment, because using the wrong address can delay processing.
You should sign and date your return, and if you are filing jointly, both spouses must provide signatures.
You should keep copies of your return, forms, and receipts for at least four years, since you may need them for future reference or if the IRS or state requests documentation.
If you requested an extension, you should file Form NJ-630; if you are sending a payment by mail, you should include Form NJ-1040-V.

Reviewing this checklist before filing will help you avoid unnecessary errors and ensure your tax filing process is completed without complications.

Frequently Asked Questions

What if I missed the deadline to file my New Jersey tax return for 2018?

You should file your tax return immediately if you missed the April 15, 2019, deadline. Even late filing helps reduce penalties and interest on taxes you still owe. The treasury division encourages taxpayers to submit forms promptly, whether by mail or if you file electronically. Making partial payments can limit additional fees until your account is complete and current.

How can I check the refund status for my New Jersey tax return?

You can check your refund status through the New Jersey Tax Portal using your Social Security number and amount. This free service is available online and by phone. Refunds for electronic returns are usually processed within a few weeks, while paper returns may take longer. The treasury division updates the system regularly so you can track when money will be deposited in your bank account or mailed by check.

Can I still use estimated tax payments from 2018 on my return?

Your New Jersey tax return should list any estimated tax payments you made during 2018. These payments reduce the amount you owe when the process is complete. You should include receipts or records for each payment. If you overpaid, the treasury division will issue a refund. You must pay the balance due if your payments were less than your income tax liability.

What if I prepared my federal tax return but not my state return?

Completing your federal tax return does not replace the requirement to file your New Jersey tax return. The state return uses different forms, income rules, and deductions. While federal taxes provide a starting point, you must prepare and submit state forms separately. You may file electronically or by mail. Using your federal and state documents ensures that the process is accurate and that your refund or balance is correct.

Do I need a tax preparer, or can I file my taxes?

You may complete your return using free service options such as NJ Online Filing. If your return involves multiple deductions, credits, or business income, you may prefer help from a tax preparer or tax experts. Enterprise services and professional assistance may include fees, but can help maximize your refund. For taxpayers with simple questions, filing electronically is a cost-effective way to prepare and submit.

How long should I keep copies of my New Jersey tax return?

You should keep your New Jersey tax return, supporting forms, and receipts for at least four years. Keeping documents from previous tax years helps you answer simple questions from the IRS or the state. If the treasury division notifies you about adjustments, accessing past returns and records allows you to respond quickly. Storing copies for several years also helps when applying for loans or expert help.

Can my spouse and I file a joint return if one of us lives outside New Jersey?

Yes, you may file a joint return even if one spouse was not a full-year resident of New Jersey. The treasury division allows couples to choose whether to file jointly or separately, depending on which option results in lower taxes. When filing jointly, you must include Social Security numbers and income details. If you owe taxes, you can pay through your bank account, by mail, or with other approved services.

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