Beginning in 2022, New Jersey has three new tax deductions called the College Affordability Deductions. These deductions will help you if you’re saving for college, if you’re currently attending and paying tuition, or if you’re paying a certain kind of student loan.
Who’s eligible? Taxpayers who have gross income of $200,000 or less, and the three deductions are up to $10,000 of contributions you make to a NJBEST (New Jersey Better Educational Savings Trust) account, which is a kind of 529 plan. If up to $2,500 worth of interest and principal payments made on NJCLASS (New Jersey College Loan to Assist State Students) student loan or up to $10,000 of tuition paid for the taxpayer, the spouse, or the taxpayer’s dependents who are attending an in-state institution of higher learning.
If you have any further questions about the College Affordability Deductions, reach out to an Alloy Silverstein advisor today!
Associate Partner
Julie has over 20 years of experience in public and private accounting, representing varied clientele including the medical, legal, and real estate industries and trusts.
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