TRENTON, N.J. – Taxpayers older than 65 without dependents could be eligible for New Jersey’s Earned Income Tax Credit under new legislation introduced by Assemblyman Ron Dancer.
“New Jersey seniors are working much later in life, either by choice or circumstances, and many are surviving on limited incomes. In high-cost states like New Jersey, many cannot afford to stop working and others do not have adequate retirement savings,” said Dancer (R-Ocean). “By eliminating the age limit on the Earned Income Tax Credit program, we would help this vulnerable population hard hit by the pandemic put food on the table, pay electric bills and make rent.”
New Jersey’s earned income tax credit program is based on the federal tax credit. In September, New Jersey expanded the program to allow workers between the ages of 21 and 24 without qualifying children to apply for a state credit even though under the federal rules they must be between 25 and 65 years old. Dancer’s bill (A4944) would increase state eligibility to taxpayers older than 65.
“The EITC puts cash back into that pockets of hardworking taxpayers earning low to moderate income,” explained Dancer. “Let’s do away with the age cap to allow our seniors still in the workforce a chance at getting the credit like everyone else.”
According to the U.S. Census Bureau’s 2016 American Community Survey, more than one in three New Jerseyans between ages 65 and 74 were employed or looking for work. The latest data shows more than 21 percent of adults over 65 are currently working.