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:
C R E D I T | ||
Taxable Income | 2023 -2024 |
2022 |
$30,000 or less | $1,000 | $500 |
$30,001 to $40,000 | $800 | $400 |
$40,001 to $50,000 | $600 | $300 |
$50,001 to $60,000 | $400 | $200 |
$60,001 to $80,000 | $200 | $100 |
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:
New Jersey State Tax Information
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