October 17, 2022 | Posted in:

New Child Tax Credit Announced for Eligible New Jersey Taxpayers

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.


New Jersey Child Tax Credit Summary Infographic

New Jersey Child Tax Credit


What is the New Jersey Child Tax Credit?

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.


NJ Child Tax Credit Income Levels and Credit Amount


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


Who is eligible for the New Jersey Tax Credit?

  • You must be a New Jersey resident for either all or part of Tax Year 2022;
    •  If you lived in New Jersey for only part of the tax year, your Child Tax Credit will be prorated based on the number of months you were a New Jersey resident. One month constitutes 15 days or more.
  • You must have a valid Social Security number or Individual Tax Identification Number;
  • You must be allowed to claim the child as a deduction for the tax year for federal income tax purposes;
  • The child must be age 5 or younger by the end of the tax year;
  • You must have taxable income of $80,000 or less;
  • You cannot have a filing status of married filing separately. You must file as:
    • Single;
    • Married/civil union couple filing joint;
    • Head of household; or
    • Qualifying widow(er)/surviving civil union partner.


Who is not eligible for the New Jersey Tax Credit?

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.


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