Child Tax Credit: New Jersey Governor Clarifies $500 Payments Will Be Available in 2023
Given many residents’ expressed interest in state-level relief during a time of economic turbulence, at the end of June, the New Jersey state legislature initiated the New Jersey Child Tax Credit program. This program provides a gross income tax credit for each taxpayer’s child (under the age of 6) for the 2022 tax filing year.
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The bill’s passing wasn’t without its snags, however, as a drafting error that would have delayed the tax credits until 2024 was uncovered prior to obtaining New Jersey Governor Phil Murphy’s signature. The bill was passed and signed regardless, with the governor promising to clarify and repair the error in due time.
This week, Gov. Murphy signed a new state Child Tax Credit bill, correcting the original legislation. Parents will now be able to receive the Child Tax Credit in 2023 when they claim it as part of their 2022 tax return, per The New Jersey Monitor.
“Tax relief is critically important and this amendment will put money into the pockets of families as early as next year,” said the governor in a statement. “I look forward to our continued progress in making New Jersey stronger, fairer, and more affordable for all of our residents.”
The Child Tax Credit program will provide eligible families with between $100 and $500 per child under 6. The maximum refundable tax credit of $500 per child under 6 is available to families earning up to $30,000 a year. For families earning more than $30,000, the amount “will be reduced by $10 for every $1,000 of income that the taxpayer’s taxable income exceeds $30,000 until the taxpayer’s income reaches $80,000,” per the June 27 Legislative fiscal estimate.
According to The Washington Examiner, the original proposal passed 31-6 in the state Senate and 76-2 in the General Assembly in June, despite the drafting error — and Republican concerns with how quickly the bills was advanced, as well as the restriction of credits to children under 6 only.
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An estimated total of 374,000 dependent children under the age of 6 will have the Child Tax Credit claimed for them for 2022, according to the New Jersey fiscal estimate. Approximately 180,700 families will be eligible for the full $500 credit and 99,500 families for $300 or less.
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