The amount of your NJEITC is a percentage of your federal Earned Income Tax Credit. For 2020, the NJEITC amount has increased to 40% of the federal credit amount. The federal maximum amounts are available on the IRS website.
For Tax Year 2020, if you are 21-24 years old and meet all the federal eligibility requirements, except the minimum age, your NJEITC is automatically $215.
For Tax Year 2021 tax filings (beginning in January 2022), eligibility for the NJEITC will be further expanded to those 65 and older without dependents and to those as young as 18.
Example: Your federal EITC is $4,000. Calculate as follows:
4,000 x .40 = 1,600
Your NJEITC is $1,600
If you lived in New Jersey for only part of 2020, your NJEITC will be based on the number of months you were a New Jersey resident. For this calculation, 15 days or more is a month.
Prorate the amount of your federal EITC for the number of months you were a resident before calculating your NJEITC.
Example: You were a New Jersey resident for five months. Your federal EITC is $ 3,600. Calculate your NJEITC as follows:
Your NJEITC is $600
Civil Union Couples
If you did not file a joint federal return, prepare a federal return as if you were married, filing jointly, and then calculate the amount of the federal EITC you would have been eligible to receive. Use that amount to calculate your New Jersey credit.