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NJ SR128
NJ SR128Urges Congress to exempt unemployment insurance and certain leave benefits from federal taxation.
summary
Introduced
05/12/2025
05/12/2025
In Committee
05/12/2025
05/12/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This Senate Resolution urges Congress to exempt from taxation unemployment insurance benefits, family temporary disability leave benefits, and temporary disability leave benefits. While the State of New Jersey does not tax these benefits, the federal government does tax them. Individuals who are on leave from work due to illness or injury or due to caring for a family member who is injured or ill are not in a position to pay taxes on limited incomes. Likewise, individuals who are out of work due to unemployment are already struggling to make ends meet, and should not be further burdened with the taxation of their unemployment benefits.
AI Summary
This resolution urges the United States Congress to exempt three specific types of benefits from federal taxation: unemployment insurance benefits, family temporary disability leave benefits, and temporary disability leave benefits. The resolution highlights that while New Jersey does not tax these benefits at the state level, the federal government currently does, which places an additional financial burden on vulnerable individuals. The rationale is that people receiving these benefits are often experiencing financial hardship due to unemployment, illness, injury, or the need to care for a family member, and should not have to pay taxes on these limited income sources. Family temporary disability leave benefits are specifically noted as being entirely funded by employees through payroll deductions, making their taxation seem particularly unfair. The resolution calls on Congress to provide relief by creating a federal tax exemption for these critical support benefits, and directs that copies of the resolution be sent to key federal government officials, including the President, Vice President, Congressional leadership, and New Jersey's congressional representatives.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Labor Committee (on 05/12/2025)
Official Document
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SR128 |
| BillText | https://pub.njleg.gov/Bills/2024/SR/128_I1.HTM |
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