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New Member
posted Feb 7, 2023 7:54:21 AM

NJ EIC

Turbotax is calculating the NJ EIC even though the EIC does not qualify on the Federal Return. How do we correct this?

0 3 697
3 Replies
New Member
Feb 7, 2023 8:32:03 AM

I found how to remove, but I would think that if the Federal Return is not using the EIC, then the state should not just automatically add it.......

Level 15
Feb 7, 2023 11:09:51 AM

Generally, the New Jersey Earned Income Credit amount will be 40% of a taxpayer's federal EIC amount. 

However, that's not always the case.  A taxpayer can sometimes qualify for state EIC without getting the federal EIC.

According to Line 58 – New Jersey Earned Income Tax Credit (NJEITC) in the Instructions for Form NJ-1040, found at 2022 Income Tax Returns:

If you were at least 18 years old, you may be eligible for an NJEITC even if you did not meet the age requirement for a federal EIC. The maximum age limit has been eliminated. 

Did you meet the following requirements during 2022? 

  • You did not have a qualifying child; and 
  • You were at least 18 years old on the last day of the tax year; and 
  • You met all federal EIC requirements except the age requirement; and 
  • You are not listed as a dependent on another tax return. 

If so, enter $224 on line 58. If you were a part-year resident, you must prorate $224 by the number of months you were a New Jersey resident.

New Member
Feb 7, 2023 11:39:35 AM

Thank you, the State Return is calculating $601 vs $224.  This was from 2021.  I'm trying to replicate our 2021 tax returns in order to start processing them myself for 2022 and forward.  (I calculated my own filings years ago until they became a bit more complicated.)  She was 19 at the end of 2021, no children, specified student, not listed as a dependent on anyone else's return.