Business Report: Unemployment overpayments, fight over tax law, child care tax credit

Thousands in NJ might not have to return pandemic-related unemployment overpayments

Rhonda Schaffler, Business Correspondent | February 8, 2022 | Business Report, Business

When the pandemic threw hundreds of thousands of New Jersey residents out of work, they were faced with frustrations and confusion over applying for extended federal pandemic unemployment benefits. Thousands ended up receiving benefits that they shouldn’t have and have since received letters asking them to return the overpayments. But, under new guidance from the U.S. Labor Department, they might not have to pay that money back. States are now allowed to waive overpayments in certain situations. State Labor Commissioner Robert Asaro-Angelo called this great news for New Jerseyans who received benefits thinking they were entitled to them, only to find out federal guidance had changed and they were not eligible. This new guidance could benefit as many as 250,000 people in New Jersey. The state will notify claimants eligible for waivers of overpayment. The average overpayment was $4,400, according to the state.

New Jersey’s newly amended PILOT law, which impacts Atlantic City’s casinos, is the subject of a legal challenge. On Tuesday, a Superior Court Judge in Atlantic City said he will issue a decision in a few weeks on whether he will stop the new casino payment in lieu of taxes law from going into effect until a legal challenge from Atlantic County is finished. The judge heard oral arguments on the county’s request Tuesday, according to The Press of Atlantic City. The amended PILOT law, which passed late last year, removed sports and internet gaming from calculations of gross gaming revenue. The county argues the changes violate a consent order from a previous lawsuit settlement and it would provide it with reduced payments.

In Washington D.C., several U.S. senators renewed their call for Congress to extend the expanded child care tax credit. The tax credit was expanded during the pandemic, making millions of additional families eligible. Supporters point to data that shows the program cut child poverty. Sen. Cory Booker (D-NJ) says the investment is worth it.

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