New Jersey Parents: Child Tax Credit May Increase In 2024

Money in your pocket? There is news about the "child tax credit" here in the Garden State and that just might translate into more money in your pocket! We have details for you and your wallet!

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According to a recent article by Patch, "Some New Jersey taxpayers may be getting a larger child tax credit under a proposal passed in the House of Representatives last week. Under the proposed measure, dubbed the Tax Relief for American Families and Workers Act of 2024, more lower-income families will be able to receive a larger tax credit. The benefits would increase the maximum credit per child to $1,800 in 2023, $1,900 in 2024 and $2,000 in 2025, plus inflation adjustments."

This move could translate to more cash back for many parents and would be a welcomed site for thousands of New Jersey Parents! According to Lending Tree, it is expensive to raise kids. "The company found that the average annual essential cost to raise a kid rose nearly 20% (19.3% nationally) between 2016 and 2021, the latest year for which complete data was available. According to the study, Families are projected to spend $237,482 over 18 years to raise a child."

Who Qualifies for the Earned Income Tax Credit (EITC)

If you want to get details on qualifying for the "tax credit" CLICK HERE  for information from the Internal Revenue Service.

According to the PATCH article, "The proposed bipartisan package, which would go into effect during the 2024 tax year, would allow taxpayers to use their income from the current or prior year in calculating the credit. Eligible households who would benefit from the new measures would see an average tax cut of $680, according to estimates from the Tax Policy Center."