NJ Senate Passes Bill to Expand Tax Credit for Child and Dependent Care

In an effort to make childcare more affordable, the New Jersey Senate on Thursday passed legislation which would revise the State’s child and dependent care tax credit to make the credit refundable.

The bill, S-4065, would revise the credit so that taxpayers would receive a cash refund if the credit amount is greater than their liability. It also expands the eligibility, from $60,000, to include New Jerseyans who have an income of up to $150,000 per year.

Under current law, the tax credit is nonrefundable and any credit that is greater than the taxpayer’s liability is unable to be claimed. Currently, the maximum New Jersey credit cannot exceed $500 per qualifying individual and $1,000 for two or more individuals.

The bill was released from the Senate by a vote of 35-0 and was sent to the Governor for final approval.

“In our state, the cost of dependent care and childcare can be financially debilitating for many families. The expansion of the child and dependent care tax credit will ensure that more people are able to afford the proper services they need,” said Senator Addiego, who co-sponsored the bill. “The funds that taxpayers are getting back from excess credit can be used for other necessities and in light of the financial burden the pandemic has caused for many people, this is a major step in the right direction.”

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4 COMMENTS

  1. Seriously, enough with the spending!!
    I was not eligible under the old law, and now am, so personally will be gaining. However, what good is a thousand dollars if a loaf of bread is going to cost half of it the way inflation is going. Just stop spending!!! Please!!!!!!!!!!!!!!!

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