Every February, I watch my neighbors scramble with their tax stuff, and half of them end up complaining they barely got anything back. Meanwhile, my friend Mike down the street somehow gets a refund that pays for his family’s vacation every year. The difference? Mike figured out that doing taxes in New Jersey isn’t just about plugging numbers into TurboTax and hoping for the best.
I learned this the hard way a few years back when I was feeling all proud of myself for doing my own taxes. Got a whopping $300 refund and thought I was doing great. Then my sister dragged me to her tax guy the next year, and he found almost $1,200 I’d left on the table. Apparently, living in New Jersey means you’re paying through the nose for everything, but it also means there are more ways to get some of that money back if you know what you’re doing.
Living in New Jersey is Expensive, But That’s Actually Good for Your Taxes
Accountant Preparing Tax Form Season 2025.
Here’s the thing about New Jersey that nobody really talks about – yeah, we pay insane property taxes and state income tax, but all that money we’re shelling out creates opportunities to get some back. It’s like the government’s way of saying “sorry we’re bleeding you dry, here’s a consolation prize.”
Take property taxes. If you live anywhere in Monmouth County, you know your property tax bill is probably higher than most people’s rent. In towns like Red Bank or Freehold, five-figure property tax bills are totally normal. That sucks when you’re writing the check, but come tax time, a good chunk of that can work in your favor on your federal return.
The state income tax situation is similar. New Jersey takes a decent bite out of your paycheck, but there are ways to offset some of that pain. The problem is most people don’t even know what they qualify for because nobody explains this stuff in plain English.
The Money You’re Probably Leaving Behind
I bet you’re missing deductions you don’t even know exist. Like, are you tracking your home office expenses? I’m not talking about claiming your whole house as an office – that’s asking for trouble. But if you work from home even part-time and have a dedicated space for work, you might be able to deduct part of your electric bill, internet, even some home repairs.
Then there’s the commuting nightmare. If you’re one of those people taking NJ Transit into the city every day, those monthly passes add up to serious money. Parking at the train station, tolls if you drive part of the way – it all costs a fortune. Some of this stuff can be deductible depending on your situation, but you have to know to look for it.
Medical expenses are another big one people ignore. Had dental work done? New glasses? Physical therapy? That stuff adds up fast, and once you hit a certain threshold, it can reduce your tax bill. My neighbor spent thousands on her mom’s nursing care last year and had no idea any of it was deductible until someone told her.
Don’t Forget About Your Health Savings Account
If your job offers an HSA and you’re not maxing it out, you’re basically throwing money away. Every dollar you put in reduces your taxable income, and you can use it for medical stuff anyway. It’s free money, but only if you actually do it.
Why Doing It Yourself Might Be Costing You
Look, I get it. Nobody wants to pay someone to do something you feel like you should be able to handle yourself. But New Jersey taxes are legitimately complicated. We’ve got federal rules, state rules, and sometimes even local rules all mixing together in ways that don’t make sense.
A decent tax person in Monmouth County deals with this mess every day. They know about deductions you’ve never heard of and credits that apply to situations you didn’t even know qualified. Last year, my tax guy caught a mistake from three years ago and filed an amended return that got me another $600. I would never have thought to do that on my own.
Plus, if you screw something up on your own, guess who has to deal with the IRS if they come knocking? But if a professional prepares your return, they can handle that headache for you.
Finding Someone Who Actually Knows What They’re Doing
Not all tax people are the same. You want someone who deals with New Jersey taxes regularly, not just someone who took a six-week course and hung out a shingle. Ask them about their experience with situations like yours. If you own a small business, make sure they handle business returns. If you have rental income or investment stuff, find someone who knows that area.
Also, find someone who’s around all year, not just during tax season. Tax questions don’t only come up between January and April, and you don’t want to be stuck trying to reach someone who’s disappeared until next February.
Stop Giving the Government Free Money
If you’re getting huge refunds every year, you’re doing it wrong. That means you’ve been letting the government hold onto your money all year without paying you any interest. Talk to someone about adjusting your withholdings so you keep more money in your paycheck throughout the year.
On the flip side, if you’re writing big checks every April, that’s not great either. Nobody wants to get hit with penalties on top of the taxes they already owe.
Bottom line: doing taxes in New Jersey isn’t a DIY project unless you really know what you’re doing. The money you spend on decent tax prep usually pays for itself in deductions you would have missed otherwise.
