NJ Child Tax Credit

New Jersey residents are eligible to claim a refundable Child Tax Credit on their New Jersey Resident Income Tax Return (Form NJ-1040) for Tax Year 2023. The credit has increased, allowing up to $1,000 per dependent child aged 5 or younger. To qualify, residents must meet specific criteria, including New Jersey residency, a valid Social Security number or Individual Tax Identification Number, and federal eligibility to claim the child as a deduction. The credit amount varies based on taxable income, with the maximum credit for those with income $30,000 or less. 

The credit can be claimed by filing Form NJ-1040, and part-year residents will receive a prorated credit. The Child Tax Credit is distinct from the Child and Dependent Care Credit, and eligible residents can claim both on Form NJ-1040. Documentation may be required after filing, and additional details can be found in the NJ-1040 Instructions. You can learn even more about this NJ Child Tax Credit here!