EITC, Vita Sites And Free File

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).

Income Limits and Maximum EITC Credits

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
No Child $15,270 $20,950 $519 $192
One Child $40,320 $46,010 $3,461 $1,281
Two Children $45,802 $51,492 $5,716 $2,115
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.

Work First New Jersey: Programs and Supports

For those who did not read the series last month on welfare, this article summarizes a number of programs and support services available to TANF families in New Jersey. Listed below are a number of documents that were recently published by either the New Jersey Division of Family Development or created in partnership with other agencies. They attempt to provide a working knowledge of services and benefits available to families trying to leave the welfare system.

Information in the documents cover such topics as: employment disregards, the Supplemental Work Support program, the SAIF program, Post-TANF benefits, Transitional Child Care and the Career Advancement Voucher Program.

Follow the links to:

For purposes of clarification, I had the pleasure of collaborating with the Department of Labor and Workforce Development and The Elizabeth Coalition to House the Homeless in creating the Post-TANF flyer and the Stuck…On Welfare? brochure, respectively. The WFNJ Handbook and the Support for Working Families brochure were published by the Division of Human Services.

For information on child care and other links visit the NJ Community Resources website.