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Division of Taxation

Know NJEITC

Eligibility

To be eligible for the NJEITC, you must:

  • Claim and be allowed (or would claim and be allowed if you met the age limit) a federal Earned Income Tax Credit for the same tax year;
  • Be a resident of this state who works or earns income;
  • Have a qualifying child or be at least 21 years old and under 65;
  • Meet the income limits for your filing status; and
  • Have a valid Social Security number (This includes your spouse and any qualifying child you list on your tax return).

Filing Status

To qualify, you can be a single individual or a married/CU couple who is filing a joint tax return .

You cannot claim an NJEITC if your filing status is Married/CU Couple, Filing Separately .

Parents swinging child
Qualifying Children (Dependents)

A qualifying child is a dependent whom is directly related to you by blood or by legal means (ex. marriage, adoption, fostering).

A qualifying child must also:

  • Have a valid Social Security number; and
  • Live with you for more than half of the year; and
  • Be younger than you (or your spouse/CU partner if filing jointly); and
  • Be under age 19 at end of the calendar year; or
  • Be under the age of 24 at the end of the calendar year and a full-time student; or
  • Be totally and permanently disabled at any time in the tax year (at any age).

Examples of qualifying children (dependents)

  • Son
  • Daughter
  • Stepson
  • Stepdaughter
  • Brother
  • Sister
  • Stepbrother
  • Stepsister
  • Half-brother/sister
  • Grandchild
  • Nieces/nephews
  • Foster child
  • Adopted child
Income

You must have earned income to qualify for an NJEITC. Earned income includes:

Examples of Income that are Not Earned Income:

  • Pay received for work while an inmate in a penal institution
  • Interest and dividends
  • Retirement income
  • Social security
  • Unemployment benefits
  • S Corporation income
  • Alimony
  • Child support

Investment Income Limit:

  • Investment income must be $3,650 or less for the year.
Maximum Credit Amounts

The maximum amount of credit for Tax Year 2020 is:

  • $2,664 with three or more qualifying children
  • $2,368 with two qualifying children
  • $1,434 with one qualifying child
  • $215 with no qualifying children
Earned Income and Limits
Filing Status
Qualifying Children Claimed
0
1
2
3 or More
Single, Head of Household or Widowed $15,820 $41,756 $47,440 $50,954
Married Filing Jointly $21,710 $47,646 $53,330 $56,844

Last Updated: Monday, 11/16/20