Child tax credit: New Jersey families can receive up to $1,000 for tax year 2023
Rachel Schilke
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New Jersey families can receive up to $1,000 per child for tax year 2023 after the state expanded the Child Tax Credit this past summer.
Gov. Phil Murphy (D-NJ) and state lawmakers doubled the size of the child tax credit to be worth a minimum of $200 and a maximum of $1,000 per child under the age of 6 in June. New Jersey is one of only five states with credits of that size or larger, according to the Institute on Taxation and Economic Policy.
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New Jersey’s child tax credit is geared toward families making up to $80,000 annually with children 6 years old or younger. The per-child tax credit is $1,000 for families earning up to $30,000 annually, $800 for families earning between $30,000 and $40,000 annually, $600 for those making between $40,000 and $50,000 annually, $400 for those earning between $50,000 and $60,000 annually, and $200 for those earning between $60,000 and $80,000 annually.
Before the expansion in June, the per-child tax credit for the brackets was half the current numbers, so a family earning $30,000 or less would have received $500 per child under 6 years old.
New Jersey’s credit is fully refundable, meaning that if families qualify for a refundable credit and the amount of the credit is larger than the tax they owe, they will receive a refund for the difference. For example, if an eligible family owes $800 in taxes and qualifies for the $1,000 child tax credit, the household would receive a $200 refund.
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Lawmakers in Colorado, Maine, Maryland, New Mexico, New York, and Vermont also expanded their respective child tax credits this year. Fourteen states offer child tax credits to offset the costs of raising children.
Colorado and New Mexico offer $1,200 and $1,138, respectively, as the only two credits larger than New Jersey’s, per the ITEP.