New Jersey Child Tax Credit

Starting in tax year 2022, the New Jersey Resident Tax Return (NJ-1040) includes a refundable Child Tax Credit. The credit is up to $1,000 per dependent child claimed on the New Jersey tax return and is available to full- and part-year residents who meet the eligibility requirements.

Eligibility Requirements

• The primary taxpayer must be a full- or part-year resident of New Jersey.
• The primary taxpayer must have a valid SSN or ITIN.
• The filing status cannot be married filing separately.
• The child must be claimed as a dependent on the federal tax return.
• The child must be age 5 or younger at the end of the year.
• The taxable income must $80,000 or less.

Full-Year Income Limits and Credit Amounts

The Child Tax Credit is calculated per eligible child and is phased out as taxable income increases:

Part-Year Credit Calculation

On a part-year tax return, the Child Tax Credit is initially determined as if the taxpayer is a full-year resident, then it's multiplied by the ratio of the months of residency divided by 12 months. (A month equals 15 days or more.)

So if a taxpayer was a part-year resident for three months, their Child Tax Credit equals:

( Amount of credit for a full-year resident ) x ( 3 / 12 )

For a part-year resident, if you see a difference between the taxable income on the NJ-1040 and the taxable income used to calculate the credit, be sure the taxpayer isn't taking a deduction or credit to which they aren't allowed.

Note: This article is a brief explanation of the New Jersey Child Tax Credit. It is not intended as tax advice.

Additional Information:

NJ DOT: Child Tax Credit

New Jersey State Tax Information

TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.