Some Parents in This State Could Get a $500 Tax Credit Each Year

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Will you be one of them?

Important points

• The increased child tax credit was not available to families in 2022.
• Now one state is trying to compensate by making funds available to lower earners.

Last year, when unemployment was high, many families struggled financially – especially those forced to deplete their savings to get through the first part of the COVID-19 crisis. Fortunately, help was made available to the public in the form of not only stimulus checks, but also an increased child tax credit.

Last year, under the increased child tax credit, families could receive up to $ 3,600 per child under the age of 6, and up to $ 3,000 per child between the ages of 6 and 17. child.

Another great feature of the increased child tax credit was that it paid parents monthly from July to December last year. Those payments represented only half the total value of the credit, but getting that money in monthly installments was a lifeline for struggling families.

Meanwhile, although legislators have not given up on the increased child tax credit, it is currently off the table for 2022. But one state is taking action to provide similar assistance to families with children.

Residents of one state can get a payday

New Jersey is often considered one of the most expensive states in the US This is largely due to factors such as high house prices and property taxes. But many families can not easily leave the Garden State – not when they have ties to their communities and in some cases are tied to a job in large nearby cities such as Philadelphia and New York.

Governor Phil Murphy says he wants to provide relief to families in New Jersey who are struggling to keep up with rising living costs. To that end, he recently signed a law creating a child tax credit program for low- and middle-income households. Under the program, those who earn $ 80,000 or less and who file an income tax return in the state of New Jersey will be eligible for relief.

Specifically, the new child tax credit will be worth it:

• $ 500 for households earning $ 30,000 a year or less
• $ 400 for households earning more than $ 30,000 a year but less than $ 40,000
• $ 300 for households earning more than $ 40,000 a year but less than $ 50,000
• $ 200 for households earning more than $ 50,000 a year but less than $ 60,000
• $ 100 for households earning more than $ 60,000 a year but less than $ 80,000

Limited lighting for some

While New Jersey’s new child tax credit is a good step toward providing financial relief to families who need it, the reality is that it can fall short for many people – especially those entitled to a mere $ 100 credit, which these days, will not go very far to pay bills.

In fact, some lawmakers have criticized the new tax credit, not only because of its limited impact, but also because of its timing. This is because parents will not be able to apply for the credit until they file their 2023 tax in the spring of 2024. That being said, the first payment under the new credit may not come for almost two years.

Of course, it is easy to argue that some help for families is better than nothing. But in a state like New Jersey where it’s possible for a modest home’s property tax bill to increase by $ 1,000 from one year to the next, a $ 100 credit, or even a $ 500 credit, does not seem like much. not.