Understanding the New Jersey Middle Class Tax Rebate
Written by Anna Gregory
New Jersey residents that filed a 2020 resident income tax return with a tax balance due of $1 or more may be eligible to receive the “Middle Class Tax Rebate” beginning July 2, 2021.
The Qualifications for the Rebate Are:
- You must be a New Jersey Resident for all or part of 2020
- You must file a 2020 New Jersey form NJ-1040
- Have at least one qualifying child claimed as a dependent on your 2020 NJ-1040
- Have a tax balance due or $1 or more on your 2020 NJ-1040
- Have a 2020 New Jersey gross income (Line 29 of form NJ-1040) of $150,000 or less for individuals with a filing status of Married Filing Joint, Head of Household, or Surviving Spouse and $75,000 or less for individuals with a filing status of Married Filing Separate or Single.
The Amount of the Tax Rebate Is:
The amount of tax due on line 50 of the taxpayers 2020 form NJ-1040 up to a maximum of $500. For example, if line 50 of your NJ-1040 equals $150 and you are eligible for the rebate, you will receive $150. If line 50 of your 2020 NJ-1040 equals $1,000, you will receive $500.
There is no need to apply for this rebate. The rebate will be calculated automatically for eligible taxpayers when they file their 2020 NJ-1040. New Jersey began mailing checks on July 2, 2021, and will continue to mail checks for up to six weeks. The state will continue to issue rebates to eligible taxpayers as 2020 NJ-1040s are processed through December 31, 2021. If you believe you will be eligible for the rebate and have not filed your 2020 NJ-1040, please provide your 2020 tax information so we can prepare and process your 2020 New Jersey Gross Income Tax Return form NJ-1040.
For questions or if you need additional guidance, please don’t hesitate to contact a member of your engagement team.