If you provide a service, own a business, or own and run a farm, you are self-employed. Self-employment income is reported as Net Profits From Business on your New Jersey Income Tax return.
Some examples of self-employment include:
Hairdressers;
Landscapers;
Child care providers;
Contractors; and
Gig workers.
Examples of gig work include:
Ride sharing;
Freelancing;
Digital marketing & search engine optimization;
Consulting; and
Renting and selling property.
Be sure to maintain business records throughout the year if you plan to claim a NJEITC. You must be able to prove you earn income to claim this credit.
Business records can include:
Your Sales Tax Certificate of Authority;
Your business license, permit, or certificate. (Cosmetology and Hairstyling License or a Home Repair Contractor License issued by the New Jersey Division of Consumer Affairs)
Your website address;
Books, records, or ledgers showing expenses paid (such as supplies) as well as business income earned. Documents that support the entries in the records submitted. For example, cash register receipts, bank statements, invoices, credit card bill statements, etc.;
Any 1099-MISC statements;
Copies of bank statements in the business’s name;
Proof of business advertising.
If you are not able to produce adequate business records, we may not be able to approve a NJEITC.
Division of Taxation
Official Site of The State of New Jersey