Child Tax Credit in New Jersey, Raising children in New Jersey comes with its unique set of financial challenges. To alleviate some of this burden, the state offers a Child Tax Credit (CTC) aimed at supporting families with young children. This guide provides a comprehensive overview of the New Jersey Child Tax Credit for the 2025 tax year, detailing eligibility criteria, benefit amounts, and the steps to claim the credit.

What is the Child Tax Credit?

The Child Tax Credit is a state-level, refundable tax credit designed to assist families with the costs associated with raising young children. For the 2025 tax year, eligible New Jersey residents can receive up to $1,000 per qualifying child under the age of six. This credit reduces any tax owed and can result in a refund if the credit exceeds the tax liability. New Jersey Official Site+1New Jersey Official Site+1

Eligibility: Who Qualifies for the Child Tax Credit in New Jersey?

To be eligible for the New Jersey Child Tax Credit in 2025, you must meet the following criteria:

• Residency: You must be a New Jersey resident for all or part of the tax year.IRS+2New Jersey Official Site+2IRS+2
• Child’s Age: The child must be five years old or younger by the end of the tax year.New Jersey Official Site
• Income: Your taxable income must be $80,000 or less.LegiScan+2New Jersey Official Site+2LegiScan+2
• Filing Status: You cannot have a filing status of “Married Filing Separately.”New Jersey Official Site
• Dependents: You must be allowed to claim the child as a dependent for federal income tax purposes.New Jersey Official Site+1Bankrate+1
• Identification: You and your child must have valid Social Security Numbers or Individual Taxpayer Identification Numbers. New Jersey Official Site

Income Limits for Child Tax Credit 2025

The amount of the credit is based on your taxable income:LegiScan+1New Jersey Official Site+1

• $30,000 or less: $1,000 per childItep+2New Jersey Official Site+2LegiScan+2
• Over $30,000 but not over $40,000: $800 per childNew Jersey Official Site+1New Jersey Official Site+1
• Over $40,000 but not over $50,000: $600 per childNew Jersey Official Site+1New Jersey Official Site+1
• Over $50,000 but not over $60,000: $400 per childNew Jersey Official Site+1Itep+1
• Over $60,000 but not over $80,000: $200 per child

If your income exceeds $80,000, you are not eligible for the credit. NerdWallet+1IRS+1

How Much is the Child Tax Credit in 2025?

As outlined above, the maximum credit is $1,000 per qualifying child for those with taxable income of $30,000 or less. The credit amount decreases as income increases, phasing out entirely at $80,000.New Jersey Official Site+3LegiScan+3Itep+3

Real-Life Example: The Johnson Family in Newark, NJ

Consider the Johnson family, who have two children aged four and five. Their taxable income for 2025 is $35,000. Based on the income brackets:

• They fall into the $30,001–$40,000 bracket, qualifying for an $800 credit per child.
• Total credit: 2 children x $800 = $1,600.

This amount will reduce their state tax liability or increase their refund by $1,600.

How to Claim the Child Tax Credit in New Jersey

To claim the credit:

1. File Form NJ-1040: Complete the New Jersey Resident Income Tax Return.New Jersey Official Site
2. Include Dependents: List your qualifying children on the form.
3. Submit Electronically: You can file your return electronically for free using the New Jersey Online Income Tax Filing system.New Jersey Official Site

Even if your gross income is below the filing requirement, you must file Form NJ-1040 to claim the credit. New Jersey Official Site+1New Jersey Official Site+1

What About Families with No Income?

The New Jersey Child Tax Credit is refundable, meaning that eligible families can receive the credit as a refund even if they owe no state income tax. This feature is particularly beneficial for low-income families, providing financial support regardless of tax liability.

Other Child-Related Tax Benefits for New Jersey Residents

In addition to the Child Tax Credit, New Jersey offers the Child and Dependent Care Credit:

• Eligibility: Available to taxpayers who paid expenses for the care of one or more qualifying individuals to enable them to work or actively look for work.New Jersey Official Site+1IRS+1
• Income Limit: New Jersey taxable income of $150,000 or less.New Jersey Official Site+1Itep+1
• Credit Amount: A percentage of the federal child and dependent care credit, varying according to income. New Jersey Official Site

Tips for Maximizing Your Credit (2025)

• File Early: Submitting your tax return early can expedite your refund.
• Ensure Accuracy: Double-check all information to avoid delays or issues with your credit.
• Utilize Free Resources: Take advantage of free tax preparation assistance offered throughout the state.
• Stay Informed: Keep abreast of any legislative changes that may affect the credit amount or eligibility criteria.

Conclusion

The New Jersey Child Tax Credit provides substantial financial relief to families with young children. By understanding the eligibility requirements and how to claim the credit, you can ensure that you receive the full benefits available to you. Always consult with a tax professional or the New Jersey Division of Taxation for personalized advice.

20 FAQs about the New Jersey Child Tax Credit for the 2025

1. What is the New Jersey Child Tax Credit (CTC)?

The New Jersey Child Tax Credit is a refundable tax credit designed to assist families with young children. For the 2025 tax year, eligible New Jersey residents can receive up to $1,000 per qualifying child under the age of six. This credit reduces any tax owed and can result in a refund if the credit exceeds the tax liability.

2. Who is eligible for the New Jersey Child Tax Credit in 2025?

To be eligible:

• Residency: You must be a New Jersey resident for all or part of the tax year.
• Child’s Age: The child must be five years old or younger by the end of the tax year.
• Income: Your taxable income must be $80,000 or less.
• Filing Status: You cannot have a filing status of “Married Filing Separately.”
• Dependents: You must be allowed to claim the child as a dependent for federal income tax purposes.
• Identification: You and your child must have valid Social Security Numbers or Individual Taxpayer Identification Numbers.

3. How much is the credit based on income levels?

The credit amount varies based on your taxable income:

• $30,000 or less: $1,000 per child
• Over $30,000 but not over $40,000: $800 per child
• Over $40,000 but not over $50,000: $600 per child
• Over $50,000 but not over $60,000: $400 per child
• Over $60,000 but not over $80,000: $200 per child

If your income exceeds $80,000, you are not eligible for the credit. New Jersey Official Site

4. Is the New Jersey Child Tax Credit refundable?

Yes, the credit is refundable. This means that if the credit amount exceeds your tax liability, you will receive the difference as a refund.

5. How do I claim the New Jersey Child Tax Credit?

To claim the credit:

1. File Form NJ-1040: Complete the New Jersey Resident Income Tax Return.
2. Include Dependents: List your qualifying children on the form.
3. Submit Electronically: You can file your return electronically for free using the New Jersey Online Income Tax Filing system.

Even if your gross income is below the filing requirement, you must file Form NJ-1040 to claim the credit.

6. Can part-year residents claim the credit?

Yes, part-year residents can claim the credit. However, the credit will be prorated based on the number of months you were a New Jersey resident. One month constitutes 15 days or more. New Jersey Official Site+2New Jersey Official Site+2New Jersey Official Site+2

7. Are there any documentation requirements?

You do not need to include any supporting documents with your NJ-1040. However, you may be asked to submit documentation after your return is processed and reviewed. New Jersey Official Site

8. Can I claim both the Child Tax Credit and the Child and Dependent Care Credit?

Yes, if you are eligible for both credits, you can claim both of them on your Form NJ-1040. The Child and Dependent Care Credit is available to taxpayers who paid expenses for the care of one or more qualifying individuals to enable them to work or actively look for work and have New Jersey taxable income of $150,000 or less. New Jersey Official SiteNew Jersey Official Site

9. What is the deadline to file for the 2025 tax year?

The filing deadline for the 2025 tax year is Tuesday, April 15, 2025. New Jersey Official Site

10. Can I claim the credit if I have no income?

Yes, since the credit is refundable, you can receive the credit as a refund even if you owe no state income tax. However, you must still file Form NJ-1040 to claim the credit. New Jersey Official Site

11. Is there a limit to the number of children I can claim?

There is no specified limit to the number of qualifying children you can claim, as long as each child meets the eligibility criteria.

12. What if my child turns six during the tax year?

To qualify, the child must be five years old or younger by the end of the tax year. If your child turns six on or before December 31, 2025, they would not be eligible for the credit for that tax year.

13. Can I claim the credit if I file as “Married Filing Separately”?

No, taxpayers with a filing status of “Married Filing Separately” are not eligible for the New Jersey Child Tax Credit.

14. Are there any other child-related tax benefits in New Jersey?

Yes, in addition to the Child Tax Credit, New Jersey offers the Child and Dependent Care Credit and the Earned Income Tax Credit (EITC). The EITC is a cash-back tax credit for working families and individuals with low to moderate income. New Jersey Official Site

15. How does the New Jersey Earned Income Tax Credit (NJEITC) work?

The NJEITC is equal to 40% of the federal Earned Income Tax Credit. For example, if your federal EITC is $4,000, your NJEITC will be $1,600. New Jersey Official Site+3New Jersey Official Site+3New Jersey Official Site+3

16. What if I made a mistake on my tax return?

If you made a mistake on your New Jersey tax return, you can file an amended return using Form NJ-1040X for the appropriate year. You must file a paper form regardless of how you filed your original return. New Jersey Official Site+1New Jersey Official Site+1

17. How can I check the status of my refund?

You can check the status of your New Jersey Income Tax refund online or by phone. For phone inquiries, call 1-800-323-4400. New Jersey Official Site

18. Are Social Security benefits taxable in New Jersey?

No, federal Social Security benefits are not taxable for New Jersey Income Tax purposes. Do not include these amounts on your New Jersey return. New Jersey Official Site

19. What if I received a benefit check by mistake?

If you mistakenly receive a benefit check, return the check to the New Jersey Division of Taxation, PO BOX 266, Trenton, NJ 08695-0266. New Jersey Official Site

20. Where can I find more information or assistance?

For more information, visit the New Jersey Division of Taxation website at https://www.nj.gov/treasury/taxation/. If you need assistance preparing your New Jersey Resident Income Tax return, volunteers are available to offer free Income Tax preparation at sites throughout the state. New Jersey Official Site