Lakewood area residents have begun to receive New Jersey’s Middle-Class Tax Rebate checks.
These rebate checks are state taxpayer funded and are unrelated to the monthly federal Child Tax Credit payments which are mainly being deposited automatically into your bank account.
Over 760,000 New Jersey families will receive up to a $500 tax rebate due to the Millionaires Tax enacted by the Governor and the Legislature last fall. The estimated program cost is $319 million.
Those eligible for the new tax rebates include single parents with up to $75,000 in annual income and spouses (with dependent children) earning up to $150,000 annually. The rebate checks go directly to those who’ve already submitted 2020 state income-tax returns.
So far, the rebate checks are averaging $297 for qualified single filers, and $425 for eligible couples who filed tax returns jointly, according to Treasury. Single people and couples without dependent children are not eligible for the rebates.
Notice that the checks prominently display Governor Murphy’s name? Yes, it is election year.
New Jersey has a history of mailing out rebate checks for the state’s popular Homestead property-tax relief program. But that ended about a decade ago when former Gov. Chris Christie converted those checks into direct credits on individual property-tax bills.
The reason? The cost of processing and mailing out the checks.
Treasury officials said recently they expect to spend $386,840 on the paper and postage needed to print and mail the checks.
Now in an election year, the state is turning back to the postal system to distribute new tax rebates.
Republican Gubernatorial Candidate Jack Ciattarelli, who will face off against Phil Murphy in the November general election, blasted the tax credits as “bribery”, saying “what you’re getting today you’re paying for tomorrow. And he’s hoping you’ll forget he shut down businesses, killed 8,000 veterans and nursing home residents, and ruled with an iron fist.”