This bill aims to enhance the New Jersey Earned Income Tax Credit (NJEITC) program by increasing benefit amounts and expanding eligibility criteria. Specifically, the bill raises the percentage of the federal earned income tax credit that residents can claim from 40% to 45% over a five-year period. Additionally, it introduces new eligibility provisions allowing taxpayers with Individual Taxpayer Identification Numbers (ITINs) to qualify for the NJEITC, which aligns with the federal program's requirements that typically necessitate a Social Security number.

Furthermore, the bill addresses the needs of taxpayers who are victims of domestic abuse by exempting them from the joint filing requirement typically imposed on married individuals. This exemption applies if the taxpayer files as married filing separately, has been living apart from their spouse, and has experienced domestic abuse within the past three years. The bill also includes provisions to ensure that the calculation of the NJEITC for these individuals is based on the federal maximum credit amount, thereby allowing them to access the benefits they would otherwise lose due to their filing status.

Statutes affected:
Introduced: 54A:4-7