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As the 2024 tax filing season continues, the New Jersey Department of the Treasury is encouraging eligible taxpayers to claim the New Jersey Earned Income Tax Credit (NJEITC) — a powerful tax relief measure for low- and moderate-income earners that could significantly reduce their state income tax liability or boost refunds.
Each year, more than 700,000 New Jersey residents qualify for the NJEITC. Yet, the Department reports that approximately 25% of eligible taxpayers fail to claim the credit, leaving millions of dollars unclaimed.
Credit Worth 40% of the Federal EITC
For tax year 2024, the NJEITC equals 40% of the federal Earned Income Tax Credit (EITC). For example, a taxpayer eligible for a $4,000 federal EITC will receive an additional $1,600 through the state program. The credit amount is prorated for part-year residents based on the number of months they lived in New Jersey during the tax year.
“New Jersey’s EITC is a vital resource that provides much-needed support for many hard-working individuals and their families,” said State Treasurer Elizabeth Maher Muoio. “Reducing tax burdens and increasing refunds puts money directly into the hands of those who need it most. We urge all New Jerseyans to go online and see if they are eligible.”
Taxpayers can check eligibility, calculate estimated credit amounts, and access filing information at njeitc.nj.gov.
Expanded Eligibility in Recent Years
As part of Governor Phil Murphy’s broader affordability agenda, the NJEITC program has been expanded to include:
- Increased credit percentage (now 40% of federal EITC)
- Lowered minimum age to 18 (previously 25)
- Inclusion of seniors aged 65 and older, even those without dependents
These changes reflect a commitment to inclusive tax policy that reaches younger workers, older adults, and those without qualifying children.
Who Qualifies for NJEITC in 2024?
To be eligible for the 2024 NJEITC, taxpayers must:
- Qualify for the federal EITC for 2024 or meet all federal criteria except age (must be at least 18);
- Be a New Jersey resident for at least part of the year;
- Have earned income during the year;
- Meet income limits based on filing status;
- Have a valid Social Security number, as must their spouse and any qualifying children.
Notably, the NJEITC must be claimed by filing a New Jersey Resident Income Tax return, even if the taxpayer’s income is below the state’s minimum filing threshold.
Free Filing Support Available
To support low- and moderate-income taxpayers, the New Jersey Division of Taxation provides:
- Free downloadable tax forms and electronic filing options
- Information on free in-person tax preparation services, including for:
- Individuals with disabilities
- Seniors over 60
- Non-English-speaking residents
Full resources are available at njeitc.nj.gov.
Brief Analysis: A Proven Anti-Poverty Tool with Untapped Reach
The EITC remains one of the most effective anti-poverty programs in the U.S., and New Jersey’s expansion demonstrates the potential of state-level tax credits to enhance economic stability for working families. Yet the persistent underutilization highlights the need for increased outreach and filing assistance, particularly among first-time filers, immigrant workers, and seniors who may not realize they qualify.
Tax professionals should proactively inform eligible clients, especially those whose incomes fall below the federal threshold, that they must still file a return to receive the NJEITC.
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