ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND AGRICULTURE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1431

STATE OF NEW JERSEY

DATED:  JUNE 3, 2024

      The Assembly Commerce, Economic Development and Agriculture Committee reports favorably Assembly Bill No. 1431.

      This bill proposes establishing a pilot program, to be known as the NJ Gross Income Tax EasyFile Program, to require the Division of Taxation in the Department of the Treasury to prepare gross income tax return forms for certain taxpayers.  The pilot program proposes to provide a simplified personal income tax return form for certain taxpayers to file.  The bill directs the division to “prefill” a taxpayer’s tax return form with information the division has available from the taxpayer’s employer.  “Pre-filled” tax return forms are required to include all the gross income tax data contained in a taxpayer’s W-2 form.

      Only taxpayers who are “wage or salary only” earners may qualify to receive a “pre-filled” tax return form, i.e., a tax return form in which most of the information comes solely from their employer W-2 forms.  To qualify, a taxpayer is required to have been a “wage only” earner in the previous taxable year.  However, for the applicable taxable year, the director may determine other conditions that may be applied to the simplified filing system.

      To receive a “pre-filled” tax return form, a taxpayer is required to satisfy the following criteria for the applicable and previous tax year: be employed in New Jersey, not be self-employed, be a full-time, year-round resident, earn less than $75,000 annually, have no dependents, and use a single or “married, filing separate” filing status on the New Jersey gross income tax returns.  The bill lists requirements for information provided on the forms, including notice of voluntary use of the forms by taxpayers and instructions for corrections to the form.  The bill also allows taxpayers to submit the pre-filled returns via mail, telephone, or a secure Internet website.  The NJ Gross Income Tax EasyFile Program will not require the use of any third-party proprietary online filing software.  The Director of the Division of Taxation will mail the forms to qualified taxpayers after the division receives New Jersey employee taxpayer withholding information (W-2).

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.