New Law Allows NJ Taxpayers Early Access to Child Tax Credit

Governor Phil Murphy yesterday signed bill S-3046/A-4640, amending the effective dates for a previously signed bill regarding state child tax credits.

The original bill, S-2523, was scheduled to take effect for the 2023 tax year, making credits available to taxpayers in 2024. The bill signed today pushes that schedule forward, allowing for the tax credit to take effect for the 2022 tax year and for credits to become available to taxpayers in 2023.

“As we all know, the cost of living in New Jersey can be particularly tough, especially for families trying to juggle many responsibilities, including raising, clothing and providing health care for their children,” said Senator Andrew Zwicker. “The enhancements of the child tax credit put in place during the COVID-19 pandemic have been a life-saver for many working families in our state, and this legislation to extend those benefits will have a positive impact in a real and tangible way.”

The child tax credit program, estimated to be a $100 million state revenue loss for FY 2023, is available to New Jersey taxpayers with incomes of up to $80,000 and is broken down as follows:

• Resident households with an income of $30,000 or less will receive a refundable gross income tax credit of $500 for each child
• Resident households with an income of $30,000 to $40,000 will receive a refundable gross income tax credit of $400 for each child
• Resident households with an income of $40,000 to $50,000 will receive a refundable gross income tax credit of $300 for each child
• Resident households with an income of $50,000 to $60,000 will receive a refundable gross income tax credit of $200 for each child
• Resident households with an income of $60,000 to $80,000 will receive a refundable gross income tax credit of $100 for each child

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