New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 35 - NEW JERSEY GROSS INCOME TAX › Subchapter 4 - CREDITS AGAINST TAX › Section 18:35-4.3 - Earned income tax credit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following terms, as used in this section,
				shall have the following meanings:
"Gross income" means gross income required to be reported under
				  the New Jersey Gross Income Tax Act,
				  54A:1-1 et seq., other than income
				  excludable from the gross income tax return, but before reduction by any applicable
				  exemptions, deductions and credits received during the taxable year by the
				  individual or married/civil union individuals filing a joint return; and, in the
				  case of a part-year resident, gross income means gross income a part-year resident
				  would have reported if the part-year resident had been a resident of New Jersey for
				  the entire taxable year.
"Federal earned income tax credit" means the credit against
				  Federal income tax provided under I.R.C. § 32.
"New Jersey earned income tax credit" means the credit against
				  gross income tax provided under
				  54A:4-6 to
				  54A:4-10.
"Qualifying child" means qualifying child as meant under section
				  32 of the I.R.C. § 32.
"Resident" means resident as defined under the New Jersey Gross
				  Income Tax Act,
				  54A:1-1 et seq.
(b) A resident individual claimant who is eligible
				for a credit under I.R.C. § 32 shall be allowed a credit for the taxable year
				equal to a percentage, as provided in (e) below, of the Federal earned income tax
				credit allowed to and claimed by the individual or by the married individuals filing
				a joint return under I.R.C. § 32 for the same taxable year for which a credit
				is claimed pursuant to this section, subject to the restrictions of this subsection
				and subsections (g) through (m) below.
(c) A civil union couple shall determine their
				State earned income tax credit in the same manner as a married couple.
(d) Married resident individuals who file a joint
				return for Federal and gross income tax purposes are eligible for a New Jersey
				earned income tax credit. The New Jersey credit shall be calculated by multiplying
				the applicable percentage found in (e) below times the Federal earned income tax
				credit claimed by and allowed to the couple under I.R.C. § 32. Civil union
				partners filing jointly are also eligible for a New Jersey earned income tax credit.
				The New Jersey credit shall be calculated by multiplying the applicable percentage
				found in (f) below times the Federal earned income tax credit claimed by and allowed
				to the civil union couple as if they were married under I.R.C. § 32. Both civil
				union and married couple resident claimants must also satisfy the requirements found
				in (g) below.
(e) The New Jersey earned
				income tax credit is the following percentage of the Federal earned income tax
				credit for married couples filing jointly and individuals:
1. For the taxable year beginning on or after
				January 1, 2000 (but before January 1, 2001), 10 percent of the Federal earned
				income tax credit allowed and claimed for the same taxable year;
2. For the taxable year beginning on or after
				January 1, 2001 (but before January 1, 2002), 15 percent of the Federal earned
				income tax credit allowed and claimed for the same taxable year;
3. For the taxable year beginning on or after
				January 1, 2002 (but before January 1, 2003), 17.5 percent of the Federal earned
				income tax credit allowed and claimed for the same taxable year;
4. For taxable years beginning on or after January
				1, 2003, but before January 1, 2008, 20 percent of the Federal earned income tax
				credit allowed and claimed for the same taxable year;
5. For taxable years beginning on or after January
				1, 2008, but before January 1, 2009, 22.5 percent of the Federal earned income tax
				credit allowed and claimed for the same taxable year;
6. For taxable years beginning on or after January
				1, 2009, but before January 1, 2010, 25 percent of the Federal earned income tax
				credit allowed and claimed for the same taxable year;
7. For taxable years beginning on or after January
				1, 2010, but before January 1, 2015, 20 percent of the Federal earned income tax
				credit allowed and claimed for the same taxable year; and
8. For taxable years beginning on or after January
				1, 2015, 30 percent of the Federal earned income tax credit allowed and claimed for
				the same taxable year.