'Substantial' Tax Credit Available: How NJ Residents Can Get Thousands Back

NEW JERSEY — Don't let free money slip away this tax season. Many New Jerseyans may qualify for a federal tax credit that could add thousands to each refund.

Legal Services of New Jersey, which heads the state's legal-services system, urged the public to check out the Earned Income Tax Credit (EITC). The benefit is designed to help low- to moderate-income workers save on taxes, especially those with children.

About 31 million workers and families nationwide earned $64 billion from the credit for an average of $2,043, according to the Internal Revenue Service. The refund amount varies by income, family size and filing status.

"This tax benefit for working people can put up to $6,935 back into a household budget," according to Marcia E. Suarez, director of Low Income Taxpayer Clinic for NJ Legal Services. "It is important that workers who qualify for the EITC have all the information they need to get the full credit
and get it right. Errors on a tax return can be a costly mistake, and will delay getting your refunds."

To qualify for the credit as a New Jersey, you must:

• have worked and earned income less than $59,187.
• have investment income below $10,300 in the tax year 2022.
• have a valid Social Security number by the due date of your 2022 return, including extensions.
• be a U.S. citizen or a resident all year.
• not file Form 2555, Foreign Earned Income.
• meet certain rules if you are separated from your spouse and not filing a joint tax return.

People whose work income is less than the amount required to file a tax return should know that the EITC is a fully refundable credit, Suarez says. So if the credit is worth more than the taxpayer owes, they'll receive a refund for the difference.

Those who make less than $60,000 also qualify for free tax-return preparation from volunteer sites and IRS-certified volunteers. Find a nearby location.

Both federal and New Jersey taxes are due April 18.

The EITC is one of the nation's largest anti-poverty programs. The credit lifted 5.4 million people above the poverty line in 2010, according to U.S. Census officials.

For help with the EITC and other federal tax issues, contact Legal Services of New Jersey's Low Income Tax Clinic through the LSNJLAW Hotline at www.lsnjlawhotline.org, or 1-888-LSNJ-LAW (1-888-576-5529).