Democrats in high-tax states plot to get around new tax law (statistics, 2015)
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People are bailing out of NJ, because of it. They better figure something out to keep their tax base there.
Last year, Connecticut had to recalculate its budget because one guy moved out of state.
ONE guy. Granted, he was a billionaire, but he decided he’d had enough with underwriting the state budget all by himself, so he packed up and moved. Connecticut was left behind, visible only in this guy’s rear view mirror, trying to figure out if they were going to have to close a few state departments, and if so, how many.
New Jersey isn’t in much better shape. They don’t have an unlimited supply of billionaire marks to fleece, either.
NJ towns and cities can establish charitable entities that will allow taxpayers to add taxes to a fund that would credit money and allow taxpayers a charitable deduction (which doesn't have a limitation on deductions) and circumvent the $10,000 limitation.
I find it interesting that the average deductions for Bergen County are > $28,000! That's a nice chunk of change!
Apparently some states have IRS-approved charities already in place and NJ figures the IRS can't object without doing away with all of them.
It just goes to prove that for every political action there is an equivalent political reaction.
Maybe the thought was, "charity begins at home" or better yet "with your home"! Or with NJ ...don't get mad - get even!
Lol so these charities can impose late penalties too...
That's not how it works. You make the contribution before your taxes are due and use the receipt for the contribution as an offset to your tax liability.
"A close look at South Carolina’s scholarship tax credit illustrates how this works. In the Palmetto State, taxpayers receive a dollar-for-dollar tax credit for any “donations” they make to certain nonprofit scholarship funding organizations—thereby making the donation essentially costless to the taxpayer. Assuming the taxpayer itemizes on their federal return, the immediate federal tax consequence of a donation is twofold: the taxpayer’s charitable deductions increase by the amount of the donation, and the taxpayer’s state income tax deduction falls by the amount of the tax credit they received. At first, this may appear to result in a wash for the taxpayer. But this is not always the case because in some instances, charitable deductions are more valuable than deductions for state income taxes paid." https://itep.org/wp-content/uploads/k12taxsubsidies.pdf
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Or with NJ ...don't get mad - get even! 
