NJ taxpayers warned: Doing your own taxes could be costing you big

One of the advantages of my additional role as a host on Newsmax is I get to meet a wide range of people who have the expertise to help our fellow New Jerseyans.

Last week we had a guest on "Wake Up America Weekend" who had some great insight as April 15 is approaching.

Why doing your own taxes could cost you money

I've said for many years that I used to do my own taxes, but learned very quickly that I was leaving money on the table, so now I rely on my good friend Jack Tinari with the CSICPA group.

Tracy Byrnes is a financial advisor and certified divorce analyst who just wrote a book called "Deduct Everything!"

She joined me on the morning show to offer some input for New Jerseyans who are preparing their own taxes this year:

She also sent me a note with five key takeaways from the "Big Beautiful Bill" as it pertains to your taxes as a New Jersey resident:

Financial expert shares tax strategies for NJ residents

1. The SALT deduction just became meaningful again

The cap on state and local tax (SALT) deductions has increased to $40,000.

For New Jersey residents — where property taxes alone can easily hit $15,000–$30,000+, this is a big deal.

Add in state income taxes, and many of you were previously capped out almost immediately.

What this means: You may finally be able to deduct a much larger portion of what you’re already paying.

2. There is now a 35% cap on the value of itemized deductions for top-income households

So even if you’re deducting more (thanks to SALT), the actual tax savings may be limited if you’re in the highest bracket.

What this means: More deductions ≠ full tax benefit.

3. Charitable giving now has a hurdle

There’s a new 0.5% of AGI threshold before charitable deductions begin to count.

So if your income is $500,000, the first $2,500 of giving doesn’t generate a deduction

What this means: Smaller donations may not provide the same tax benefit, making strategies like donor-advised funds and “bunching” more important.

4. Families may see new (but nuanced) tax relief

The law introduces targeted tax breaks aimed at working families — including relief tied to tips and overtime income (2025–2028).

What this means: Households with variable income (hospitality, service, hourly work) may see real tax savings

But income limits and phaseouts apply, so not everyone benefits equally
Planning around income timing and reporting becomes more important

Translation: Some NJ families will feel relief, but it’s not automatic, and it needs to be navigated carefully.

5. Estate planning just got more predictable

The federal estate tax exemption is now set at approximately $15 million per person ($30 million per couple) and indexed for inflation.

What this means: Less uncertainty, but planning is still critical, especially if you have real estate, a business, or significant assets.

Bottom line: For New Jersey families, this tax law gives with one hand, like increasing the SALT cap, but takes back with the other through limits and thresholds.

That’s why planning matters more than ever.

The post above reflects the thoughts and observations of New Jersey 101.5 talk show host Bill Spadea. Any opinions expressed are Bill's own.

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