What you need to know about $500 NJ tax rebate checks

New Jersey will start issuing rebate checks to some of the more than 760,000 eligible households. Couples with income below $150,000 and at least one dependent child and individuals with income below $75,000 and at least one dependent child are slated to receive income tax rebates of up to $500 under the $46.4 billion budget signed by Gov. Phil Murphy on Tuesday.

The first 51,000 checks will be hitting the mail Friday. Treasury expects to issue roughly 100,000 checks per week, according to a spokeswoman.

According to nj.com, eligibility is based on New Jerseyans’ 2020 tax returns. Murphy and legislative leaders agreed to tax rebates as part of a deal last fall to raise taxes on high-earners and included more than $300 million for the program in the new fiscal year budget.

The agreement on tax rebate, announced in September, came amid the fallout from the pandemic. Officials said it would help both the state and its low- and middle-income families during the health and economic crises.

Eligibility

Married couples in New Jersey with income below $150,000 and at least one dependent child qualify for a rebate check. Individuals with less than $75,000 in income and at least one dependent child qualify.

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The benefit is based on 2020 gross income, which is your income before taxes and deductions and only New Jersey residents are eligible for the rebate.

How much?

The maximum rebate is $500. The administration estimated 764,000 New Jersey households qualify for it. Unlike the federal stimulus payments, there is no sliding scale based on income here. However, it is a non-refundable tax rebate, which means your state income tax liability has to be at least $500 to receive the full $500 rebate. If your state income tax liability is only $300, you will receive a $300 rebate. If it is $100, you’ll receive a $100 rebate.

“The rebate is the lesser of $500 or an amount equal to the amount of tax after credits on the 2020 gross income tax return,” the Treasury Department said.

Not necessary to apply

If you filed a 2020 return, it will automatically be sent to you if you qualify. The state is sending paper checks, not direct deposit.

The more than 716,000 eligible couples filing jointly will receive an average of $425, while the nearly 48,000 single filers will receive an average of $297, according to the Department of Treasury.