L. 2022, S2523, effective for tax years beginning on or after 01/01/2023, provides to New Jersey residents, a child tax credit for each child who has not attained six years of age as of the close of the tax year. Regardless of filing status, the amount of the credit will be: (1) $500 if New Jersey taxable income is $30,000 or less; (2) $400 if New Jersey taxable income is greater than $30,0000 but not over $40,000; (3) $300 if New Jersey taxable income is greater than $40,000 but not greater than $50,000; (4) $200 if New Jersey taxable income is greater than $50,000 but not greater than $60,000; and (5) $100 if New Jersey taxable income is greater than $60,000 but not greater than $80,000. These income limits apply regardless of filing status except that married filing separately taxpayers are not permitted to claim this credit.
Mandelbaum Barrett PC Tax Law Partner Martin D. Hauptman, Esq. is available to answer any questions you may have.
Read the full alert about Senate Bill 2523 here.