The New Jersey earned income tax credit is a credit for certain taxpayers who work and have earned income. The credit reduces the amount of tax you owe and may also give you a refund, even if you have no tax liability to New Jersey.
For tax years 2003-2006 you are allowed a credit in the amount of 20% of your Federal earned income tax credit if you satisfy all of the following requirements:
- Be eligible for the Federal earned income tax credit;
- Claim the Federal credit by filing Federal Schedule EIC on which at least one "qualifying child" is listed;
- New Jersey filing status is either married filing joint return, head of household, or qualifying widow(er) and is the same as the filing status on the Federal income tax return; and
- Have NJ gross income of $20,000 or less.
When completing your New Jersey income tax return, you must provide the name, social security number, and birth year for any “qualifying child” listed on your Federal Schedule EIC who is not claimed as your dependent for New Jersey purposes.