The amount of your NJEITC is a percentage of your federal Earned Income Tax Credit. For 2019, the NJEITC amount has increased to 39% of the federal credit amount. The federal maximum amounts are available on the IRS website.
Example: Your federal EITC is $4,000. Calculate as follows:
4,000 x .39 = 1,560
Your NJEITC is $1,560
Phase-In of Percentage Amount
Beginning with Tax Year 2018, a law was enacted that increases the New Jersey Earned Income Tax Credit payment amount from 35% to 40% of the federal Earned Income Tax Credit payment amount over three years. The New Jersey benefit amount increases as follows:
After Tax Year 2020, the NJEITC will remain at 40% of the federal EITC.
If you lived in New Jersey for only part of 2019, 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 $585
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.