Bill > A4082

Introduced Session

This bill increases the benefit amounts under the New Jersey earned income tax credit (NJEITC) program and expands eligibility for taxpayers with Individual Taxpayer Identification Numbers (ITIN) and those taxpayers who have been victims of domestic abuse Currently, the program provides a tax credit equal to 40 percent of the federal earned income tax credit. The bill increases this amount from 40 percent to 45 percent over a five-year period. This bill allows taxpayers with ITINs to qualify for the NJEITC program. Under the federal earned income tax credit program, a taxpayer, including a spouse if filing a joint return, is required to have a Social Security number issued by the federal Social Security Administration in order to qualify. Eligibility for the NJEITC program is generally linked to the federal earned income tax credit program; thus, an individual taxpayer who has an ITIN does not qualify for either the federal or State programs. The bill modifies the eligibility criteria under the NJEITC program to allow taxpayers with ITINs to qualify for the tax credit. The bill also expands eligibility under the NJEITC program for taxpayers who are victims of domestic abuse. Under the federal program, if a taxpayer is married, the taxpayer is required to file a joint return with their spouse to be eligible for the federal earned income credit. However, victims of domestic abuse typically file as married filing separately, losing their federal earned income credit and NJEITC program eligibility in the process. The bill exempts a married taxpayer from the joint filing requirement if the taxpayer files as married filing separately and the taxpayer: (i) was living apart from the taxpayer's spouse on the last day of the taxable year for which the credit is claimed; (ii) was a victim of domestic abuse, as defined by the bill, within the past three years; and (iii) indicates on the taxpayer's gross income tax return that the taxpayer meets the criteria set forth in the bill.

Committee Categories

Verlina Reynolds-Jackson (D)*,  Shanique Speight (D)*,  Aura Dunn (R),  Garnet Hall (D),  Robert Karabinchak (D),  Carol Murphy (D),  Ellen Park (D),  Sterley Stanley (D), 

Introduced, Referred to Assembly State and Local Government Committee (on 03/18/2024)

Official Document