NJ Tax Rebate Checks In The Mail, More To Follow: What We Know

NEW JERSEY — The state mailed more than 200,000 rebate checks worth up to $500 since the beginning of the month, according to officials. More than half-a-million more will get mailed in the coming weeks.

The checks will go to about 760,000 families overall. Taxpayers are eligible if they meet the following criteria:

• have at least one child as a dependent
• couples with income less than $150,000
• individuals or married couples who filed individually, with income below $75,000
• paid income taxes in 2020

The first batch went out July 2 — days after Gov. Phil Murphy signed the $46.4 billion state budget into law. The budget included an estimated $319 million for the rebate program, which is roughly what the state estimated millionaires would contribute under their higher tax rate.

Here's what else you should know:

What is eligibility based on?

The criteria are based on the gross income — income before taxes and deductions — on 2020 tax returns.

When will I receive the rebate?

The state began sending out checks two weeks ago and will mail roughly 100,000 per week.

Do I have to apply?

No. Eligible individuals who filed a 2020 tax return will automatically receive one.

Is direct deposit available?

No. The state is sending paper checks.

How much will I get?

Not everyone will receive $500. Those who paid less than $500 in income tax will get an amount equal to what they paid. For instance, an eligible family who paid $200 in taxes will get a $200 rebate check.

The rebate is also prorated for part-time residents based on the number of months they lived in New Jersey.

What if you have more than one child?

The rebate doesn't take into account the number of dependent children each parent or couple has.

Do I pay taxes on the rebate?

No. Much like the federal stimulus checks, you do not pay taxes on New Jersey's rebate checks.

Can the rebate be garnished for back taxes?

The checks will be subject to the Set-Off of Individual Liability, which withholds tax refunds and benefits from those who owe federal taxes, traffic fines, child support or other debts.