HUGE: New Legislation Would Double New Jersey’s Child Tax Credit

Legislation introduced on Monday could significantly help lower-income New Jersey families when it comes to their taxes.

The bill doubles the amount of the child tax credit currently provided to certain taxpayers with children under age six. Under current law, a resident taxpayer with New Jersey taxable income of $80,000 or less is allowed a credit against the State income tax for each child under age six. The amount of the credit is $500 per child if the taxpayer’s income is $30,000 or less and is incrementally reduced with respect to levels of income in excess of $30,000. The credit is completely phased out once a taxpayer’s income exceeds $80,000.

Beginning in tax year 2023, the bill would double the credit from $500 to $1,000 for a resident taxpayer with a taxable income of $30,000 or less and a child under age six. The bill also doubles the amount of the credit currently provided for taxpayers with taxable incomes over $30,000 but less than $80,000 with a child under age six.

A separate bill that was already passed would raise the age of the child tax credit from 6 years old to 12 years old, which is likely to be voted on today.