I'm doing my first NJ return. It's part-year CA and part-year NJ. It looks like unlike CA only Real Estate taxes and Medical expenses from federal Sch A flow to the NJ return (all real estate taxes paid in NJ, rented in CA). Among other things this implies NJ does not allow a deduction for mortgage interest, charitable contributions, employee business expense). Is this correct! What am I missing?
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Yes, that's correct. The New Jersey tax is a "tax on GROSS income." There are practically no deductions. Medical expenses and alimony are the major exceptions. The real estate tax deduction or credit has an upper limit. There are two uncommon deductions for special situations on Form NJ-1040 lines 32 and 33. That's it. Bob Sandler
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