Department of Human Services | Earned Income Tax Credit can save millions for New Jersey’s Working Families
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For Immediate Release:
December 6, 2007

For Information, Contact:
Suzanne Esterman, 609-292-3703

Commissioner Jennifer Velez today urged low- and moderate-income working families to apply for an Earned Income Tax Credit (EITC) when filing their federal and state 2007 income taxes.
 
 
The Commissioner said that thousands of New Jersey families may miss out on federal and state credits unless they file for the EITC. This is especially true for tax year 2007 since the state income-eligibility now mirrors the federal standard, allowing more people than ever to qualify.

Governor Corzine expanded the Earned Income Tax Credit program to include nearly 300,000 additional low-income workers and their families. “Assisting working families is a hallmark of my Administration,” said Governor Corzine. “Through the Earned Income Tax Credit, we’re helping these families to manage their homes and care for their children. I would encourage all eligible families to apply for these tax credits.”

The EITC reduces the taxes some income-earners owe, increases some refunds and may provide refunds even if the earners don’t owe taxes. Residents who earn too little to file a tax return still may be eligible for the credit. The credit is based on income and the number of qualifying children in the household. The maximum a family can earn, and still apply for the federal and state EITC, is $39,783.

“EITC is important for families who are trying to support themselves in these financially-difficult times,” said Commissioner Velez. “The credit — which can be as much as from $4,700 for federal taxes and as much as $943 for state taxes — helps encourage self-sufficiency and break the bonds of poverty,” she said.

To be eligible, those filing must have earned income from wages or self-employment. For the 2007 tax year, employed individuals must have adjusted gross income of less than:

  • $37,783 ($39,783 if married filing jointly) with two or more qualifying children;
  • $33,241 ($35,241 if married filing jointly) with one qualifying child; or
  • $12,590 ($14,590 if married filing jointly) with no qualifying child/children.

No one with more than $2,900 in investment income, such as interest or dividends, can claim the EITC.

New Jersey residents who are eligible for the federal credit according to the above chart may qualify for the state EITC as well. To be eligible for the NJEITC, a taxpayer must both file for and receive the federal credit, and file a New Jersey resident income tax return.

The long-standing EITC Public/Private Partnership continues its extensive public-awareness campaign to reach EITC-eligible families. The Partnership is comprised of the Department of Human Services’ Division of Family Development, the Department of Treasury’s Division of Taxation, the Internal Revenue Service, the Association for Children of New Jersey (ACNJ) and Public Service Electric & Gas (PSE&G). As the lead EITC partner, PSE&G has funded printing flyers and envelope inserts distributed to New Jersey residents through state agencies.

Both federal and NJ 2007 tax forms will be available after January 1, 2008.  The filing deadline is April 15, 2008. 

For more information on the EITC and on free tax return preparation assistance available through the IRS’s local Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) program, New Jersey residents can call the state’s toll-free social services hotline 2-1-1 or the IRS at 1-800-829-1040. Or access the New Jersey Division of Taxation homepage at http://www.state.nj.us/treasury/taxation/

 
 
 
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