The New Jersey Earned Income Tax Credit (NJEITC) is a credit for certain residents who work and have earned income. The credit reduces the amount of New Jersey tax you owe and may also give you a refund, even if you have no tax liability to New Jersey.
Most residents who are eligible and file for a Federal earned income credit can also receive a New Jersey earned income tax credit. For 2009 the New Jersey Earned Income Tax Credit (NJEITC) is 25% of the applicant's Federal earned income credit (up from 22.5% of Federal credit in tax year 2008). For example, if your Federal earned income credit is $3,000, the amount of your NJEITC will be $750 (2009 NJEITC = Federal EIC x 25%). Part-year residents who qualify for the NJEITC must prorate the amount of the credit based on the number of months as a New Jersey resident. For tax year 2010 and after, the NJEITC amount has been reduced to 20% of the Federal credit.
Note: If your filing status is married/civil union partner, filing separate return, you may not claim the NJEITC.
How to Apply
To receive the NJEITC, you must file a New Jersey resident income tax return. This is true even if you are not required to file a return because your income is below New Jersey’s minimum filing threshold. The minimum filing threshold for 2009 is $20,000 or less if your filing status is married/civil union couple, filing joint return, head of household, or qualifying widow(er)/surviving civil union partner. The minimum filing threshold is $10,000 or less if your filing status is single.
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.
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