New Jersey Residency Requirements for Tax Purposes (2024)
Tracking US States & Canadian Provinces
New Jersey Residency Requirements & Day Tracking
Track your days in New Jersey and determine your tax residency status
Overview
New Jersey residency requirements
Domicile Test for Residents
New Jersey primarily determines tax residency through the Domicile Test. You're considered a resident if New Jersey is your domicile - your true, fixed, permanent home. Even if you spend time outside the state, maintaining significant ties to New Jersey may classify you as a resident. Non-residents, however, may still have tax obligations. If you earn income from New Jersey sources, you'll need to file a New Jersey non-resident income tax return, typically using the NJ-1040NR form, also known as the state of New Jersey non-resident tax form.
183-Day Rule and Non-Resident Considerations
If you're not domiciled in New Jersey, you may still be considered a statutory resident if you maintain a permanent place of abode and spend over 183 days in the state during the tax year. Accurate day tracking is crucial, as even partial days often count fully. Non-residents working in New Jersey or earning income from NJ sources must file a non-resident return. The NJ nonresident return allows you to report income allocated to New Jersey while potentially avoiding full resident tax rates.
Part-Year Residency and Tax Obligations
New Jersey recognizes part-year residency for individuals moving into or out of the state mid-year. In these cases, you'll file a part-year resident return, allocating income between resident and non-resident periods. Understanding the nuances between resident and non-resident status is crucial, as it affects which New Jersey non-resident tax form you'll use. Part-year residents typically use a modified version of the resident form, while full-year non-residents use the specific New Jersey nonresident income tax return.
Bona Fide Non-Resident Exception
New Jersey offers a 'Bona Fide Non-Resident Exception' for certain individuals with a permanent place of abode in the state. To qualify, you must spend no more than 183 days in New Jersey, have a permanent home elsewhere, and limit your time in your NJ abode to 30 days or less. This exception can be vital for those with vacation homes or temporary work assignments. If you meet these criteria, you may file as a non-resident using the appropriate New Jersey non-resident income tax form, potentially reducing your tax liability.
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