New Jersey Expands EITC to Younger Workers
Earlier this week, New Jersey Governor Phil Murphy (D) signed legislation to lower the age of eligibility for the state’s Earned Income Tax Credit (EITC) from 25 to 21.
The legislation was passed by the New Jersey Legislature and included in Gov. Murphy’s FY 2021 Budget, as part of a set of tax fairness initiatives aimed at tackling income inequality. The Governor’s budget also officially increases the EITC from 39 to 40 percent of the federal credit, completing the last of three phased-in increases under the state’s 2018 EITC expansion. In a press release about the expansion, Gov. Murphy said, “This expansion of the EITC to more residents takes on an added urgency as it will put more money in the pockets of our lower and middle-income families as they continue to face the harsh realities of the COVID-19 pandemic.”
According to the Governor’s office, this expansion will benefit an additional 60,000 workers across the state. New Jersey is the third state in 2020 to expand their credit beyond the limits of the federal EITC to make it more accessible to all workers. During the summer, California and Colorado expanded their credits to filers using Individual Taxpayer Identification Numbers (ITINs).
To learn more about other state-level tax credits across the country, visit our 50-state map here.