The $46.4 billion New Jersey state budget signed by Gov. Phil Murphy on Tuesday, June 29th, will provide a $500 tax rebate for over 760,000 New Jersey families. This credit will be given to households earning up to $150,000 with at least one dependent child and individuals earning below $75,000 with at least one dependent child.

Since July 2, 2021, the Middle Class Tax Rebate is being issued to eligible New Jersey residents that file a 2020 resident Income Tax return (NJ-1040) with a tax balance of $1 or more. There is no need to apply for this rebate. A rebate will be calculated automatically for eligible taxpayers when you file your NJ-1040.

From the New Jersey Division of Taxation

How much will I receive if I am eligible?

The rebate amount is equal to the tax paid after credits (line 44), up to a maximum amount of $500. That means if the amount on line 50 is less than $500, you will receive a check for the amount shown on line 50. If the amount on line 50 is $500 or more, you will receive a check for $500. Tax rebates will be issued as a paper check, separate from your Income Tax refund.

When will I receive my check?

The first mailing begins July 2 and will continue for about six weeks. Please allow time for delivery. We will continue to issue rebates to eligible recipients as 2020 tax returns are processed through December 31, 2021.

Am I eligible?

To qualify you must:

• Be a New Jersey resident for all or part of 2020;
• Submit a 2020 NJ-1040;
• Have at least one qualifying child claimed as a dependent on your NJ-1040;
• Have a Balance of Tax of $1 or more (line 44 of the NJ-1040);
• Have New Jersey Gross Income (line 29 of the NJ-1040) of $150,000 or less for individuals with a filing status of Married Filing Joint, Head of Household, or Surviving Spouse ($75,000 or less for individuals with a filing status of Married Filing Separate or Single).

For more information, reach out to your Bowman tax specialist or contacts us via the button below.