Refundable tax credits proposed by New Jersey Senate Republicans

Residents could get refundable tax credits when they file their 2021 state income taxes under proposed legislation from the New Jersey Senate Republicans.

The GOP lawmakers say the state should return its excess revenues to taxpayers.

Senators want to return the money in tax credits for taxpayers with a gross income of up to $500,000. Under the proposal, the credits would be $500 for anyone filing taxes individually and $1,000 for those filing jointly.

Senate Republicans say the New Jersey Treasury Department’s latest monthly revenue collection numbers show state tax collections have increased by 21% over last year. They anticipate that during the governor’s upcoming budget message, Murphy will say the state collected more than $3 billion in additional taxes than projected.

“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,” state Sen. Declan O’Scanlon, R-Monmouth, said in a 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,” O’Scanlon, the Senate Republican budget officer, added. “There’s no complicated formula, just money back in the pockets of New Jerseyans in a simple, fair, and transparent manner.”

A spokesperson for Murphy did not immediately respond to a request from The Center Square for comment.