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Division of Taxation

Middle Class Tax Rebate

The Middle Class Tax Rebate program has concluded. However, the latest State budget includes funding for a newly expanded property tax relief program known as ANCHOR - the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR). ANCHOR will provide relief to more than 1.15 million Homeowners – double the amount under the previous Homestead Benefit – and to more than 900,000 renters. Information regarding this program will be posted to the Division’s website as it becomes available.

Middle Class Tax Rebate checks will continue to be mailed to eligible residents filing a 2020 Income Tax return (NJ-1040) claiming at least one dependent child with a tax balance of $1 or more.

How Do I Apply for the Middle Class Tax Rebate?

There is no need to apply for this rebate. A rebate will be calculated automatically for eligible taxpayers after you file your 2020 NJ-1040 return.

How much will I receive if I am eligible?

The rebate amount is equal to the tax paid after credits (line 50), up to a maximum amount of $500. That means if the amount on line 50 is less than $500, you will receive a check for the amount shown on line 50. If the amount on line 50 is $500 or more, you will receive a check for $500. Tax rebates will be issued as a paper check, separate from your Income Tax refund.

Am I eligible?

To qualify you must:

  • Be a New Jersey resident for all or part of 2020;
  • Submit a 2020 NJ-1040;
  • Have at least one qualifying child claimed as a dependent on your NJ-1040;
  • Have a Balance of Tax of $1 or more (line 50 of the NJ-1040);
  • Have New Jersey Gross Income (line 29 of the NJ-1040) of $150,000 or less for individuals with a filing status of Married Filing Joint, Head of Household, or Surviving Spouse ($75,000 or less for individuals with a filing status of Married Filing Separate or Single).

Applicable Laws and Rules

N.J.S.A.54A:9-30, P.L. 2020, c.94, s.3

Last Updated: Monday, 08/01/22