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Division of Taxation

Know NJEITC

Eligibility

To be eligible for the NJEITC for Tax Year 2021, you must:

  • Claim and be allowed (or would claim and be allowed if you met the age limit) a federal Earned Income Tax Credit for the same tax year;
  • Be a resident of this state who works or earns income;
  • Have a qualifying child or be at least 18 years old;
  • Meet the income limits for your filing status; and
  • Have a valid Social Security number (This includes your spouse and any qualifying child you list on your tax return).

Filing Status

To qualify, you can be a single individual or a married/CU couple who is filing a joint tax return .

You cannot claim an NJEITC if your filing status is Married/CU Couple, Filing Separately .

Parents swinging child
Qualifying Children (Dependents)

A qualifying child is a dependent whom is directly related to you by blood or by legal means (ex. marriage, adoption, fostering).

A qualifying child must also:

  • Have a valid Social Security number; and
  • Live with you for more than half of the year; and
  • Be younger than you (or your spouse/CU partner if filing jointly); and
  • Be under age 19 at end of the calendar year; or
  • Be under the age of 24 at the end of the calendar year and a full-time student; or
  • Be totally and permanently disabled at any time in the tax year (at any age).

Examples of qualifying children (dependents)

  • Son
  • Daughter
  • Stepson
  • Stepdaughter
  • Brother
  • Sister
  • Stepbrother
  • Stepsister
  • Half-brother/sister
  • Grandchild
  • Nieces/nephews
  • Foster child
  • Adopted child
Income

You must have earned income to qualify for an NJEITC. Earned income includes:

Examples of Income that are Not Earned Income:

  • Pay received for work while an inmate in a penal institution
  • Interest and dividends
  • Retirement income
  • Social security
  • Unemployment benefits
  • S Corporation income
  • Alimony
  • Child support

Investment Income Limit:

  • Investment income must be $10,000 or less for the year.
Maximum Credit Amounts

The maximum amount of credit for Tax Year 2021 is:

  • $2,691 with three or more qualifying children
  • $2,392 with two qualifying children
  • $1,447 with one qualifying child
  • $601 with no qualifying children
Earned Income and Limits
Filing Status Qualifying Children Claimed
0 1 2 3 or More
Single, Head of Household or Widowed $21,430 $42,158 $47,915 $51,464
Married Filing Jointly $27,380 $48,108 $53,865 $57,414

Last Updated: Monday, 12/20/21