New Jersey A2442 adjusts various income thresholds and qualifications under the gross income tax for inflation.

New Jersey A2442 modifies the state's gross income tax by indexing several income thresholds and qualifications for inflation. Starting from tax year 2022, the bill mandates annual adjustments using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) published by the U.S. Bureau of Labor Statistics. This includes adjustments to income limits for tax credits, deductions, and exemptions, ensuring they remain relevant with changes in the cost of living. The bill affects taxpayers by potentially altering their eligibility for certain tax benefits and their overall tax liability.

New Jersey A2442 adjusts various income thresholds and qualifications under the gross income tax for inflation.

New Jersey A2442 modifies the state's gross income tax by indexing several income thresholds and qualifications for inflation. Starting from tax year 2022, the bill mandates annual adjustments using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) published by the U.S. Bureau of Labor Statistics. This includes adjustments to income limits for tax credits, deductions, and exemptions, ensuring they remain relevant with changes in the cost of living. The bill affects taxpayers by potentially altering their eligibility for certain tax benefits and their overall tax liability.