New Jersey Urges Residents to Claim Earned Income Tax Credit to Boost Financial Relief

State Treasury Highlights Underutilized Tax Benefit Aimed at Lower-Income Workers

TRENTON, NJ – The New Jersey Department of the Treasury is actively encouraging residents to check their eligibility for the state’s Earned Income Tax Credit (NJEITC), one of the most generous tax relief programs in the nation, as the 2023 tax season gets underway. Despite the potential for significant financial assistance, approximately one in five eligible New Jersey taxpayers do not claim this benefit, leaving crucial funds unclaimed.

“New Jersey’s Earned Income Tax Credit is among the most generous in the country; the average credit is about $826, on top of the federal credit,” said State Treasurer Elizabeth Maher Muoio. “Though this credit puts money directly back in the pockets of many families, some taxpayers are unaware of the program and how to apply for it. We want to encourage New Jerseyans to learn more about the NJEITC through the helpful resources available from our Division of Taxation, and urge those who are eligible to take advantage of this valuable program.”

In recent efforts to enhance affordability within the state, the Murphy Administration has increased the NJEITC amount three times, broadened the age eligibility from 21 to 18 years, and extended the benefit to seniors aged 65 and older without dependents. For the 2023 Tax Year, eligible individuals could receive up to $2,972 for families with three or more qualifying dependents, or $240 for those without dependents, based on their New Jersey Gross Income.

To be eligible for the NJEITC, taxpayers must also qualify for the federal Earned Income Tax Credit (EITC), which could amount to up to $7,430 for those with three or more qualifying dependents, or $600 for individuals without dependents. Eligibility criteria include being a New Jersey resident with earned income, being at least 18 years old (with or without dependents), meeting specific federal income limits, possessing a valid Social Security number for all family members listed on the tax return, and filing a New Jersey Resident Income Tax Return (NJ-1040).

The Department of the Treasury is making concerted efforts to raise awareness about the NJEITC through its Division of Taxation website and encourages all eligible residents to apply to maximize their tax returns. The division also provides around-the-clock information and assistance online, including free tax forms and access to a free electronic filing system. Moreover, several free tax preparation assistance programs are available to help low- to moderate-income individuals, people with disabilities, non-English speakers, and seniors over 60.

For more detailed information on the New Jersey Earned Income Tax Credit, including eligibility requirements and how to apply, residents are urged to visit njeitc.org. By taking advantage of the NJEITC, eligible New Jerseyans can ensure they are not missing out on a valuable resource designed to aid in their financial stability and support the broader goal of making the Garden State more affordable for everyone.