New Jersey Earned Income Tax Credit
Last updated August 2026
The New Jersey Earned Income Tax Credit is real money at tax time: 40 percent of whatever your federal EITC is, stacked on top of it. For tax year 2025 that ranges up to about $260 with no dependents and about $3,218 with three or more qualifying children. You claim it by filing the NJ-1040, even if your income is so low you are not required to file. Skipping the return is literally leaving both credits unclaimed.
New Jersey opened the door wider than the IRS did. The federal credit for workers without kids only covers ages 25 to 64. New Jersey lets anyone 18 or older claim the NJEITC, with or without dependents. An 18-year-old stocking shelves and a 70-year-old greeter both qualify here even though the federal rules skip them.
The checklist is short: earned income from work, a valid Social Security number, New Jersey residency for at least part of the year, not being claimed as someone's dependent, and investment income under $11,950 for tax year 2025.
Families with young children should look at the second credit on the same form. The New Jersey Child Tax Credit pays up to $1,000 per child age 5 or younger when taxable income is $30,000 or less, stepping down to $200 per child at incomes up to $80,000. It is refundable, meaning it can increase your refund even when you owe nothing.
Both credits arrive through one act: filing the NJ-1040. Free filing help exists through VITA sites in season; dial 2-1-1 to find the nearest one. Bring last year's return, W-2s, and Social Security cards for everyone on the return.
Money at tax time pairs with money all year. The same working-family income that earns the EITC often qualifies the household for NJ SNAP with its $95 minimum, NJ FamilyCare for the kids up to 355 percent of poverty, and the USF utility credit. The NJHelps screener checks them in one pass.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- You generally must qualify for the federal Earned Income Tax Credit and file a New Jersey NJ-1040 return, even if your income is below the filing threshold
- New Jersey residents at least 18 years old by the last day of the year may claim it, with or without dependents; the credit is 40 percent of your federal EITC and refundable
You may qualify. The program makes the final decision.
How to apply
- 1
File your federal return and claim the federal EITC first.
- 2
File the NJ-1040, even if your income is below the filing requirement.
- 3
Claim the NJEITC at 40 percent of your federal credit, and the NJ Child Tax Credit if you have kids 5 or younger.
- 4
Need help? Dial 2-1-1 to find free VITA tax preparation nearby.
What the application looks like
Common questions
How much is the New Jersey EITC?
40 percent of your federal EITC. For tax year 2025 that means up to about $260 with no dependents and up to about $3,218 with three or more qualifying children.
I am 20 and have no kids. Do I qualify?
You can. New Jersey allows the NJEITC from age 18 with or without dependents, unlike the federal 25-to-64 band for childless workers. You still need earned income and to file the NJ-1040.
What is the NJ Child Tax Credit?
A refundable credit of up to $1,000 per child age 5 or younger, for taxable incomes up to $30,000, phasing down to $200 per child at $80,000. Claim it on the NJ-1040.
Do I need to file if my income is very low?
Yes, to get the money. Both credits only arrive through a filed NJ-1040, even when your income is below the filing threshold.
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