New Jersey Society of CPAs Urges New Jerseyans to Take Advantage of New Higher Education Tax Breaks
ROSELAND, NJ – Representatives of the New Jersey Society of Certified Public Accountants (NJCPA) participated in a press conference on February 24, 2022 hosted by Assembly Speaker Craig Coughlin and the New Jersey Higher Education Student Assistant Authority to highlight a new law that benefits New Jersey students.
On June 29, 2021, the New Jersey Legislature passed the New Jersey College Affordability Act. The bill provides several benefits to New Jersey residents who wish to pursue higher education, including:
- A one-time grant of up to $750 (dollar for dollar matching) where an NJBEST account is initially opened by a taxpayer who has a gross income of $75,000 or less;
- A tax deduction of up to $10,000 for amounts contributed to an NJBEST account by a taxpayer who has gross income of $200,000 or less;
- A tax deduction of up to $10,000 for tuition paid to a state institution of higher education by a taxpayer whose gross income is less than or equal to $200,000; and,
- A tax deduction of up to $2,500 for amounts of principal and interest paid on a student loan under the NJ CLASS program by a taxpayer who has a gross income of $200,000 or less.
In 2021, total student loan debt outstanding for New Jersey’s 1.3 million borrowers is nearly $50 billion, according to student loan education website Student Loan Hero. . The average outstanding balance per borrower is estimated to be over $33,000. Debt incurred to fund post-secondary education prevents students from buying homes, starting families, and saving for retirement, among other major life decisions and purchases. According to a 2019 survey by the NJCPA, 79% of respondents indicated that they had at least one client or client’s family member who put off major life decisions and purchases because of their loan debt. student.
“We commend Assembly Speaker Coughlin and the members of the New Jersey Legislative Assembly for passing this important bill,” said Melissa Dardani, CPA, Founder of MD Advisory and Member of the Task Force on NJCPA student loan debt. “Tuition fees have skyrocketed in recent years, with no commensurate increase in starting salaries for graduates. These new measures will help more New Jerseyans pursue college or other post-secondary education.
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The New Jersey Society of Certified Public Accountants (NJCPA), with more than 13,000 members, represents the interests of the accounting profession and advances the financial well-being of New Jerseyans. The NJCPA plays a leadership role in supporting the profession by providing its members with educational resources, access to shared knowledge, and an ongoing effort to create and expand professional opportunities. Visit njcpa.org.
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