New Jersey $500 Child Tax Credit: Who’s Eligible?
The New Jersey Assembly passed a child tax credit Monday. This version fixes a mistake in the original bill that would have put off payments for 2 years.
The legislature passed the program in June, and
Gov. Phil Murphy
signed it into law. It gives each child under the age of 6 a refundable credit of up to $500 per year.
Democrats came up with the program because living costs were going up and state elections were closer than expected last fall.
But because of a mistake in how the original law was written, people couldn't claim the credit until 2023 and families wouldn't benefit until 2024.
A tax credit of up to $500 per child will be available to families with yearly incomes of up to $30,000 per year.
According to the legislation, the benefit will reduce by $10 for every $1,000 that is added to the annual income of the family.
And it will continue to do so until it hits a minimum of $300 per child for a household earning up to $80,000.
The benefits come at a time when inflationary pressures are at some of their worst levels in forty years.
According to ChildCare Aware of America, the average cost of child care in the northeastern U.S. in 2020 was $25,000, which is almost double the annual cost of college tuition.