The New Jersey Division of Taxation has announced a new state Child Tax Credit for households earning under $80,000. Refundable tax credits of up to $500 per child will be available when filing the 2022 state income tax return.
While the legislature was originally passed in June 2022, Governor Murphy signed the bill into law on October 4, 2022 in order to make the Child Tax credit available to New Jersey taxpayers sooner. This is separate from the federal Child Tax Credit, which was divided into advanced monthly payments in 2021.
Starting with Tax Year 2022, eligible New Jersey residents can claim a refundable Child Tax Credit on their New Jersey Resident Income Tax Return (Form NJ-1040). The credit amount can be up to $500 for each dependent child age 5 or younger that is claimed on Form NJ-1040. The credit reduces any tax owed and can result in an increased refund for the taxpayer.
Taxable Income | Credit Per Child |
---|---|
< $30,000 | $500 |
$30,000 – $40,000 | $400 |
$40,000 – $50,000 | $300 |
$50,000 – $60,000 | $200 |
$60,000 – $80,000 | $100 |
Taxpayers who file married filing separately are not eligible for New Jersey’s Child Tax Credit. Households with income exceeding $80,000 are also disqualified from receiving the credit.
Alloy Silverstein strives to keeps the community informed on tax and business matters that impact individuals and businesses. For tax planning assistance, request a consultation today. Call our Cherry Hill or Hammonton office at 856-667-4100.
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