54:8A-9 - Standard deduction - New Jersey Statutes

54:8A-9.  Standard deduction
    (a) Any taxpayer may elect to deduct 10% of his gross income, or $1,000.00,  whichever is less, in lieu of all deductions otherwise permitted under this  act.  The deduction provided for by this section shall become known as the   "standard deduction."

    For taxable years beginning in 1971, the standard deduction shall be 13% of  gross income or $1,500.00, whichever is less;  for taxable years beginning in  1972, the standard deduction shall be 14% or $2,000.00, whichever is less; for  taxable years beginning in 1973 the standard deduction shall be 15% or $2,000.00, whichever is less;  for taxable years beginning in 1978 the standard  deduction shall be 16% or $2,400.00, whichever is less;  and for taxable years  beginning in 1981 and thereafter the standard deduction shall be 17% or  $2,500.00, whichever is less.

    A husband and wife shall not be entitled to a standard deduction in an amount greater than one computed on their aggregate gross income, whether they file separate or joint returns.  If they file separate returns, neither may elect the standard deduction unless the other also so elects. If both so elect, either may take such deduction, or they may divide it; except that for taxable years beginning in 1971 the standard deduction shall be 13% of gross income or $1,500.00, whichever is less:  for taxable years beginning in 1972 the standard deduction shall be 14% or $2,000.00, whichever is less;  for taxable years beginning in 1973 the standard deduction shall be 15% or $2,000.00, whichever is less;  for taxable years beginning in 1978 the standard  deduction shall be 16% or $2,400.00, whichever is less;  and for taxable years  beginning in 1981 and thereafter the standard deduction shall be 17% or  $2,500.00, whichever is less.

    Such election may be changed for a taxable year after the filing of the return, subject to regulations issued under this act.  If a taxpayer wishing to  make such change has a spouse who filed a separate return, the change shall not  be allowed unless (1) such spouse also makes a change consistent with the  change desired by the taxpayer and (2) both consent in writing to the  assessment of any additional tax resulting from such change without regard to  time limits otherwise preventing such assessment.

    (b) Minimum New Jersey standard deduction.  For taxable years beginning in 1978 and thereafter:

    (1) The New Jersey standard deduction of an individual who is not married nor the head of the household nor a surviving spouse shall be the amount determined under subsection (a) of this section or $1,400.00, whichever is greater, except that for taxable years beginning in 1981 and thereafter the minimum amount shall be $1,500.00;

    (2) The New Jersey standard deduction of a husband and wife whose New Jersey  taxable income is determined jointly, or of the head of a household, or of a  surviving spouse, shall be the amount determined under subsection (a) of this  section or $1,900.00, whichever is greater, except that for taxable years  beginning in 1981 and thereafter the minimum amount shall be $2,000.00; and

    (3) The aggregate New Jersey standard deductions of a husband and wife whose  New Jersey taxable incomes are determined separately shall be the amount  determined under subsection (a) of this section or $1,900.00, whichever is  greater, except that for taxable years beginning in 1981 and thereafter the  minimum amount shall be $2,000.00 and such standard deductions may be taken by  either or divided between them as they may elect.

     L.1961, c. 32, p. 129, s. 9, eff. May 29, 1961.  Amended by L.1961, c. 129, p. 756, s. 4;  L.1962, c. 70, s. 3;  L.1970, c. 304, s. 3;  L.1972, c. 12, s. 4; L.1978, c. 131, s. 2, eff. Oct. 18, 1978;  L.1981, c. 374, s. 1, eff. Dec. 30, 1981.