This bill amends the New Jersey earned income tax credit program to expand eligibility for taxpayers who are victims of domestic abuse. Specifically, it allows these individuals to claim the credit while filing as "married filing separately," which is typically not permitted under federal and state law for married individuals seeking the earned income tax credit. The new provisions state that a married taxpayer is exempt from the joint filing requirement if they are living apart from their spouse, unable to file jointly due to domestic abuse, and indicate their eligibility on their tax return.

The bill introduces specific legal language that clarifies these conditions, ensuring that victims of domestic abuse are not penalized for their filing status. This change aims to provide financial relief to those affected by domestic violence, allowing them to access the earned income tax credit that they would otherwise lose by filing separately. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.

Statutes affected:
Introduced: 54A:4-7