The New Jersey Earned Income Tax Credit (NJEITC) is for residents of limited income. To take the credit, you must have worked and earned wage or business income. The credit reduces the amount of New Jersey tax you owe and may 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 – even if your income doesn't meet the threshold amount for filing a New Jersey Tax return.
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 0.35). 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.