Governor Chris Christie • Lt. Governor Kim Guadagno  
The Official Web Site For The State of New Jersey - Department of Treasury
Global Navigation
FAQs Departments/ Agencies Services A to Z NJ Home Page
Disclaimer
Website Survey

Did You Receive a Letter Asking for Additional Information?

What is the New Jersey Earned Income Tax Credit?

How much is the credit?

Why did I receive this letter?

How do I qualify for the New Jersey Earned Income Tax Credit?

What if I don’t have one of the documents requested?

Can I resolve this over the phone?

Do I have to respond by mail?

Why do I need the Social Security cards?

What is an IRS Tax Account Transcript?

What is a Form W-2?

What is a Form 1099?

How do I prove my earned income if I am self-employed?

What is a Sales Tax Certificate of Authority (CA-1)?

What if I don’t respond?



What is the New Jersey Earned Income Tax Credit?
The New Jersey Earned Income Tax Credit (NJEITC) is a refundable credit available to low to moderate income individuals and families. The credit reduces the amount of New Jersey income tax you owe and may give you a refund, even if you do not owe tax to New Jersey. The NJEITC is claimed on your NJ-1040 and is a percentage of your Federal Earned Income Credit (EIC).


How much is the credit?
The credit is equal to 35% of your allowable Federal EIC.


Why did I receive this letter?
The Division is committed to protecting your tax dollars and wants to make sure that we are sending you the correct refund. We have adopted new security measures that require you to send additional information.


How do I qualify for the New Jersey Earned Income Tax Credit?
To qualify for the NJEITC, you must also qualify for and receive the Federal EIC. For more information, visit the Internal Revenue Service (IRS) website.


What if I don’t have one of the documents requested?
Visit Alternate Documents For The New Jersey Earned Income Tax Credit for more information.


Can I resolve this over the phone?
No, you cannot resolve this matter over the phone. You must send us the requested documents. We understand you may have questions or concerns. You can contact us at 609-943-5000. Phone Agents are available Monday from 8:30 a.m. to 5:30 p.m. and Tuesday through Friday 8:30 a.m. to 4:30 p.m. except state holidays.


Do I have to respond by mail?
You must provide your documents so we can process your refund. Instead of mailing your documents, you can:

If you need to confirm that we have received your documents, we recommend using one of the above methods.


Why do I need the Social Security cards?
You, your spouse, and any qualifying child listed on your tax return must have a valid Social Security number.


What is an IRS Tax Account Transcript?
A Tax Account Transcript shows basic information about your tax return; such as return type, marital status, and taxable income amount. It also shows changes made after you filed your original tax return.

A transcript is not a photocopy of your return. You must request your IRS Tax Account Transcript directly from the Internal Revenue Service.

You can request this by: 

You must receive a Federal Earned Income Credit (EIC) to receive a New Jersey Earned Income Tax Credit. This Tax Account Transcript shows if you received a Federal EIC.


What is a Form W-2?
Your employer will send Form W-2 to you at the end of the year. This form contains your annual wages and the amount of taxes withheld on your behalf. We need the W-2 to verify your income. 

If you don’t have your W-2 or can’t find it, visit Alternate Documents For The New Jersey Earned Income Tax Credit for additional information.


What is a Form 1099?
You may receive Form 1099 to document payments you received from a trade or business (newspaper delivery, house/office cleaning, construction, etc.) or if you reported income on Line 17, NJ-1040, Net Profits from a Business.

You need to send us any 1099 received except for a 1099-G from the New Jersey Department of Labor and Workforce Development. Unemployment compensation is not taxable income in New Jersey and should not appear on your NJ-1040.


How do I prove my earned income if I am self-employed?
You must prove your “earned income” to claim the NJEITC. To do that, it’s important to maintain good business records throughout the year. Below are some hints to help you do that.

  1. Maintain a daily or weekly log.

    Keep a record showing your business income earned and business expenses paid each day. The records should contain enough information to correctly determine the tax year's gross receipts, business expenses and the income reported on your NJ-1040.

  2. Retain receipts and other documents.

    Save all receipts and documents that help you support your business income and expenses. These can be:

    • Cash register receipts;
    • Invoices;
    • Copies of canceled checks or credit card receipts;
    • Bank deposit receipts.

  3. Use a bank account.

    This will help you prove your income – providing a record of cash and check deposits, withdrawals and monthly statements.

What is a Sales Tax Certificate of Authority (CA-1)?
If you are a vendor of taxable goods or services, you are required to register with New Jersey. The Sales Tax Certificate of Authority is your permit to collect Sales Tax.

If you have a Sales Tax Certificate of Authority, send us a copy. If you don’t have one, visit Alternate Documents For The New Jersey Earned Income Tax Credits for more information.

You can also send us any permit, license or certificate that you have for your business. For example, a Cosmetology and Hairstyling License or a Home Repair Contractor License issued by the New Jersey Division of Consumer Affairs.


What happens after I send my information?
We process and review documents in the order they are received so the sooner you respond, the faster we can review your documents. We must manually review all documents, so this process may take up to 90 days.

We will mail a follow-up letter to you if we need additional information.


When can I check the status of my refund?
We will work quickly to review and process your documents. You can check the status of your refund after the 90 day review period is over. In certain instances, the review process may take longer than 90 days. Thank you for your patience and understanding as we work to protect the resources of you and your neighbors.

If you need to confirm that we have received your documents, we recommend using our New Jersey Online Notice Response Service (NJ ONRS) or visiting one of our Regional Information Centers.


What if I don’t respond?
If you do not provide the information we requested in the letter, we will not be able to process your refund. It’s important that you respond with the requested documents. We may delay future refunds if you do not respond.



Back to Top


Last Updated: Tuesday, 02/28/17



Taxation: Home | Site Index | Site Help | Legislature | Judiciary | Revenue | IRS | Other Tax Links | Glossary
Treasury: Home | ServicesPeopleBusinesses | Divisions/AgenciesForms
Statewide:
NJ Home | Services A to Z | Departments/Agencies | FAQs
Copyright © State of New Jersey, 1996-
This site is maintained by the Division of Revenue and Enterprise Services.


Reports Accessibility Statement Legal Statement Privacy Notice Contact Us Open Public Records Act Proposed Rules and Amendments Comment or Petition for new Rule Division/Ageny Statutes and Rules Electronic Notification