New Jersey S580 allows a gross income tax deduction for student loan interest, mirroring the federal deduction.
New Jersey S580 introduces a gross income tax deduction for student loan interest, aligning with the federal deduction under section 221 of the Internal Revenue Code. This deduction applies to interest paid on qualified education loans, with a maximum limit of $2,500, subject to inflation adjustments. The deduction phases out for taxpayers with modified adjusted gross incomes exceeding $70,000 for single filers and $140,000 for joint filers, and is eliminated entirely for incomes over $85,000 and $170,000, respectively.
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- Legal Framework
- Critical Issues
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