New Deductions for College Related ExpensesJanuary 26, 2022

The New Jersey Division of Taxation has advised that there will be three new deductions available for college related expenses in the 2022 tax year for taxpayers with gross income of $200,000 or less. Taxpayers will be able to deduct up to: (1) $10,000 of contributions made during the year to a New Jersey 529 plan account; (2) $2,500 of principal and interest paid on student loans issued under New Jersey College Loans to Assist State Students; and (3) $10,000 of tuition costs if the taxpayer, his or her spouse or dependent enrolls and attends a New Jersey institution of higher education. ( N.J. Div. of Taxation, College Affordability Act, 01/24/2022 .)