What is the New Jersey Middle Class Tax Rebate?

The New Jersey Middle Class Tax Rebate is a legislature that started in 2020 designed to give middle class members of New Jersey a much needed tax break.  If the taxpayer meets all the requirements below they are eligible for the credit. There is no need for taxpayers to apply as the state automatically looks into the taxpayer’s eligibility. The credit is equal to the amount of tax due after credits (line 50).  However, there is a maximum of $500. If the amount on line 50 is less than $500 the taxpayer will receive the amount listed. If the amount on line 50 is greater than $500 than the taxpayer will receive the credit maximum of $500.

Who is Eligible for the Credit?

In order to qualify for the tax rebate for 2021 the taxpayer must:

• Be a New Jersey Resident for at least part of 2021
  Part-year residents will have their rebate pro-rated for the number of days lived in New Jersey
• File a NJ-1040 for 2021
• Claim at least one qualifying child as a dependent on the return
• Have a tax balance after credits greater than $1

Income Thresholds

There are also thresholds that New Jersey filers cannot exceed in order to claim the Middle Class tax rebate. The NJ Gross Income (line 29 of NJ-1040) thresholds are:

• Married Filing Joint, HOH, Surviving Spouse: $150,000 or less
• Married Filing Separate or Single: $75,000 or less

When will you receive the Check?

For the 2020 tax year, paper checks were mailed out to eligible taxpayers. The rebate checks were mailed out between July 2^nd and July 31^st of 2021 and will continue to issue rebate checks to eligible recipients.  Tax rebates will be issued as a paper check, separate from your income tax refund.