Lawmakers want to give many New Jersey residents an easier way to file state tax returns and at the same time enroll in vital social service programs.
Legislation sponsored by a high-ranking member of the state Senate calls for the establishment of a program called ReadyReturn that would assist low-income taxpayers and other residents who want help filling out their returns.
While it’s too late to go into effect before the April 15 tax deadline, the legislation, if enacted, eventually would allow state government to use tax information it already collects from employers to fill out qualified taxpayers’ state return for them.
From there, the taxpayers would need only to review their returns and submit them back to the state. Sponsors argue that would save time and money, if taxpayers otherwise would have used commercial filing services.
At the same time, the envisioned state service — which would be modeled off a ReadyReturn program operating successfully in California — would allow for participating taxpayers’ latest income information to be shared automatically with other state departments and agencies.
That would link low-income taxpayers directly to government assistance programs for which they may be eligible, such as nutrition, child care and home heating aid.
The legislation seeking to establish a ReadyReturn program in New Jersey is sponsored by Sens. Teresa Ruiz (D-Essex) and Angela McKnight (D-Hudson).
Ruiz serves as the Senate’s majority leader and McKnight is a member of the Senate Health, Human Services and Senior Citizens Committee.
“There is no linear way to navigate the tax filing process, and circumstances like fluctuating income, language or technological barriers, or limited access to professional help only add to the stress families face this time of year,” Ruiz said.
“The ReadyReturn program would make this process easier by providing data that the state already collects directly to taxpayers, saving people time, money, and reducing the likelihood of errors,” Ruiz said. “It would also simplify enrollment for eligible families into safety net programs, helping us reach more households in need.”
The push to establish a ReadyReturn program in New Jersey follows the recent cancelation of a federal program by President Donald Trump’s administration that gave many taxpayers a way to submit, for free, fairly routine tax returns directly to federal and state governments.
Credit: (John Mooney/NJ Spotlight News)That service, called DirectFile, was used by thousands of New Jersey taxpayers last year, saving them an estimated $1.4 million in tax-prep fees, according to the New Jersey Innovation Authority, an agency charged with making it easier for people to connect with state services and programs.
ReadyReturn program in New Jersey could also result in increased usage of tax benefits geared toward lower-income taxpayers, including the Earned Income Tax Credit, or EITC. That credit provides refundable tax benefits to thousands of low-wage workers annually in New Jersey.
However, state officials have raised concerns in recent years because many eligible taxpayers are simply not seeking the benefits.
According to the legislation sponsored by Ruiz and McKnight, many in New Jersey are also eligible to receive social services from state government, but they are not enrolled in the programs that provide such services, often only for lack of awareness.
“Residents of New Jersey would greatly benefit from a program that harnesses the State’s existing tax filing process to facilitate low-income residents in accessing essential safety net benefits,” according to the bill.
The legislation would set up the tax-filing help as an optional tool, meaning eligible residents would not have to use the service if they don’t feel comfortable doing so.
The state “is to notify each taxpayer that is eligible for a tax return prepared pursuant to the bill that the ReadyReturn Program is a filing option available to eligible taxpayers,” according to the bill.
“The notification is to include the following information: a description of the program; the taxpayer’s eligibility for participation in the program and the taxpayer’s ability to view or file a tax return prepared for the taxpayer pursuant to the program; and that the taxpayer’s participation in the program is optional,” the bill says.
The legislation was introduced last month and referred to the Health, Human Services and Senior Citizens Committee. It has yet to come up for a vote.
This story is made possible in part by the Corporation for Public Broadcasting, a private corporation funded by the American people.
