18 Apr I have little income. Do I have to file a tax return?

Q. For 2021, I had $18 in income on a 2021 Department of Treasury 1099-INT statement. Obviously, my New Jersey tax liability is zero with that income. I paid no New Jersey income tax so there’s no refund due. Is there any reason I should file a state return anyway? I did file a 2021 federal return to collect the fully refundable child tax credit, so no worries there.
— Taxpayer, maybe?

A. We’re glad you’re asking.

Per the instructions for NJ-1040, the filing threshold for single and married filing jointly is $10,000 and $20,000 respectively.

So if you have zero income, you’re not required to file a New Jersey income tax return, said Michael Maye, a certified financial planner and certified public accountant with MJM Financial in Gillette.

But, he said, some taxpayers who are not required to file may still want to.

This would include people who had New Jersey income tax withheld and you are entitled to a refund, if you paid New Jersey estimated taxes for the tax year or you are eligible for a New Jersey Earned Income Tax Credit or other tax credit, Maye said

He recommends you file a 2021 New Jersey tax return so you do not miss out on any potential state of New Jersey tax credits you may be entitled to.

“For example, the reader might be entitled to the $50 property tax credit,” he said. “Also, since the reader is also having a federal tax return prepared, doing a New Jersey return is a layup when the preparer is using tax preparation software.”

Finally, given your income situation, you can use tax preparation services such as Volunteer Income Tax Assistance (VITA), which would give you help preparing your return for free.

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This story was originally published on April 18, 2022.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.