The New Jersey Earned Income Tax Credit (NJEITC) is for certain residents who work and earned wage or business income. The credit reduces the amount of New Jersey tax you owe and may also give you a refund, even if you owe no tax to New Jersey.
Most residents are eligible for the NJEITC if they are eligible to receive a Federal Earned Income Credit (EIC). You must first file a Federal 1040 form to confirm eligibility for and receive the Federal EIC, and then file a New Jersey Gross Income Tax Resident Return (Form NJ-1040) to receive the NJEITC.
If your filing status is married/civil union partner, filing separately
, you may not claim the NJEITC.
How to Apply
To receive the NJEITC, you must file a New Jersey 1040 using information from your Federal 1040. This is true even if your income is equal to or less than the New Jersey filing threshold amount
The NJEITC payment is equal to 35% of the Federal benefit. For example, if your Federal earned income credit is $3,000, the amount of your NJEITC will be $1,050 (2016 NJEITC = Federal EIC x 35%). A part-year resident who qualifies for the NJEITC must prorate the amount of the state credit based on the number of months the resident was a New Jersey resident.
When Will I Get My Refund?
Many NJEITC filers will receive their refund according to our normal processing schedule. However, some filers may receive notices requesting additional information. You must respond to the notice in order to complete the processing of your refund. For more information go to Important Notice for Earned Income Tax Credit Claimants with Pending Refunds.