A4890

Increases the New Jersey Earned Income Tax Credit benefit amount from 40% to 60% of the federal benefit amount.

This bill raises the benefit amount under the New Jersey Earned Income Tax Credit (EITC) program to 60 percent of the federal benefit amount, effective starting in Tax Year 2022. The New Jersey EITC program, which mirrors the federal EITC program, currently offers a refundable tax credit under the New Jersey gross income tax equal to 40 percent of the federal benefit amount. The federal and state EITC programs aim to provide tax relief to low- to moderate-income workers and families. To qualify for the New Jersey EITC, individuals must first file for the federal EITC.