New Jersey Assembly Bill A202

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Increases age of dependent for whom gross income tax exemption for higher education expenses may be claimed from under 22 years to under 25 years.

Impact

The impact of this bill would be felt primarily by families with dependents aged 22 to 25 who are enrolled in post-secondary education. Given that the previous law had not been updated since 1976, A202 addresses modern economic realities where young adults often continue their education beyond traditional ages. The bill is likely to provide substantial financial relief through increased tax deductions, thereby encouraging more individuals to pursue higher education.

Summary

Assembly Bill A202 proposes to increase the age limit for dependents for whom taxpayers can claim a gross income tax exemption for higher education expenses. Specifically, the bill raises the age from under 22 years to under 25 years. This change allows parents or guardians to continue receiving tax benefits for children attending accredited post-secondary institutions of higher education, which can significantly alleviate the financial burden of tuition and related costs for families supporting older dependents in college.

Contention

While there is strong support for A202, some points of contention may arise surrounding the equitable distribution of tax benefits. Critics could argue that despite the increase in age eligibility, the benefits still disproportionately favor higher-income families who can afford to support their children through longer educational pursuits. Opponents may call for a more nuanced approach, potentially introducing means testing or complementary support mechanisms for lower-income families to ensure that all students have access to higher education opportunities without incurring excessive debt.