New Jersey Republican Senators introduce legislation to give $3-billion in tax credits to NJ taxpayers
If you want your money back as a New Jersey taxpayer, you could very well get some extra funds heading your way.
New Jersey Senate Republicans issued a statement late last week that they plan on introducing legislation that will ultimately give $3-billion in refundable tax credits to New Jersey taxpayers.
The announcement comes prior to Governor Phil Murphy speaking this Tuesday where GOP legislators expect that he'll announce at his Budget Address, that he's collected at least $3-billion, possibly $4-billion more in taxes than he budgeted for this fiscal year, which ends on June 30.
You'd get the money right away too, the GOP legislation would kick right in and provide some relief at home, especially the many struggling with inflation, as opposed to you having to wait years.
New Jersey taxpayers' immediate relief from this legislation would come in through $500 and $1,000 refundable tax credits when you file your state income taxes for the year 2021.
“Governor Murphy has collected at least $3 billion more in taxes from New Jerseyans than he projected in his budget this year,” Senate Republican Leader Steven Oroho (R-24) said in a written statement. “We want to give this unexpected and unneeded windfall back to New Jersey families who are struggling to get by with surging inflation. Our plan would give New Jerseyans a $500 or $1,000 tax credit, depending on their filing status, when they file their 2021 New Jersey income tax return this spring. We’re proposing direct tax relief that would put real cash back into people’s wallets quickly.”
The GOP Senators cite the Murphy administration's projection that the State’s major tax revenues would decline by more than 5% this year.
However, in their statement, they said: "the latest monthly revenue collection report from the New Jersey Treasury Department shows tax collections have actually jumped by 21% over last year."
“If Governor Murphy’s bad financial projections resulted in taxpayers paying billions more than needed, Senate Republicans believe we should give it back to New Jersey families hit hard by inflation,” Monmouth County State Senator Declan O’Scanlon (R-13), the Senate Republican Budget Officer, said in a written statement. “Under our plan, overtaxed New Jerseyans would get their money back this spring through tax credits of $500 or $1,000 based on filing status. There’s no complicated formula, just money back in the pockets of New Jerseyans in a simple, fair, and transparent manner.”
If enacted, this legislation gives taxpayers the excess tax collections of $3-billion, and the money would be given back as a refundable tax credit for your 2021 state income tax returns, provided you have a gross income of $500,000 or less.
The tax credit would be $500 for those who are single or married and filing separately and $1,000 for those filing jointly, as a head of household, or as a surviving spouse.
The credit is refundable, which GOP Senators said means "that any excess credit beyond the taxpayer’s tax liability will be paid to the taxpayer in the form of a tax refund."
If the proposal is enacted, and you have already filed your tax returns for 2021, you would not be required to amend the returns to get the refundable credit, it would be sent to you automatically by Treasury.
“New Jerseyans who want the billions they were overtaxed to be returned to them can send Governor Murphy the message to Give It Back now at www.GiveItBack.us,” Oroho said.