The Earned Income Tax Credit (EITC) is a refundable tax credit for families and individuals who have income from employment. It increases the amount refunded to a taxpayer or reduces the amount of tax owed. You must file a tax return to claim your EITC.
Twenty-eight states, including New Jersey, maintain their own state EITC program. New Jersey taxpayers may receive a credit equal to 37% of their federal credit. It is based on their employment earnings, filing status, number of children and adjusted gross income (AGI).
|Number of Qualifying Children||Single/Head of Household or Widow(er), Income Must be Less Than||Married Filing Jointly, Income Must be Less Than||Maximum Federal Credit||Maximum NJ State Credit|
|Three or More Children||$49,194||$54,884||$6,431||$2,380|
Free assistance to prepare and file your federal and state income tax returns are available from a number of organizations and programs, including a United Way listing of New Jersey VITA Sites. You can also access the IRS VITA Site Locator Tool. Free, easy to use online software is available to taxpayers with an Adjusted Gross Income of $66,000 or less through the Free File program.
The EITC Assistant is an online tool to help determine if a family may qualify for EITC by answering a number of questions. The IRS also publishes a one page fact sheet, IRS Notice 797 and a forty page booklet on EITC, IRS Publication 596.
Employers, have you told your employees about the Earned Income Tax Credit? If not, distribute copies of IRS Notice 1015. The New Jersey Division of Taxation also publishes a Statement to Employees with helpful links and phone numbers.
Nonprofits, advocacy groups and government agencies can participate in outreach efforts by distributing the Division of Family Development’s NJ 2018 EITC Flyer which is included on their EITC page. Groups interested in conducting an outreach campaign or promoting EITC on social media should subscribe to the Center on Budget and Policy Priorities’ Get It Back Campaign.
Another option is to download IRS2Go, the official IRS mobile app. You can use it to check the status of your tax refund or find free tax prepartion services, etc.
Philadelphia Area and South Jersey residents can find free tax site locations by visiting the
Campaign for Working Families website.