The total number of states providing relief child tax credits or deductions has risen to 12, as New Jersey recently passed its own child tax credit legislation.
By David Nadelle
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The federal enhanced Child Tax Credit provided working American families with $3,000 per child under 18 years of age and $3,600 per child six and younger. But the refundable credit was only available in an enhanced version for 2021 and has since reverted to its original maximum amount of $2,000 per child for 2022.
On June 29, the New Jersey legislature voted to approve a $500 tax credit for families with children that earn $30,000 or less a year. According to NorthJersey.com, credits decrease by $10 for every $1,000 of yearly family income above $30,000, until reaching a minimum of $300 per child for a household earning up to the cut-off of $80,000 per year.
“It helps New Jerseyans live in place and work to raise a family,” said Assemblywoman Verlina Reynolds-Jackson before the vote. “The child tax credit directly provides assistance to families without the necessity of submitting additional applications.”
The other new addition was from Republican governor Phil Scott, who introduced the Vermont Child Tax Credit at the beginning of June, enabling households to receive a $1,000 child tax credit for children under 5 years in families earning $125,000 or less per annum. The program is expected to benefit over 30,000 children in Vermont.
The North Carolina Child Deduction isn’t new, but it often gets left out of discussions concerning child tax credits, because it is a deduction, not a credit. However, the top amount available to taxpayers is a generous deduction if you qualify.
Depending on adjusted gross income (AGI) and tax income filing status, families in North Carolina could receive a tax deduction up to $2,500 per qualifying child. Residents of the Tar Heel State can see what deduction they may be eligible to receive by checking out the Child Deduction Table on the NC Department of Revenue site.
Just because a state isn’t participating in a CTC program, it doesn’t mean it doesn’t have respite available to its residents. Many states are experimenting with gas rebate checks and inflation stimulus programs to provide relief to citizens as state coffers are flush and federal programs are scarce.
See: Federal Gas Rebate Checks Worth $100 a Month Forthcoming?Find: Stimulus Check Updates To Know for July 2022
To see if your state has a child tax credit program in place, check the chart below, which has information provided by the National Conference of State Legislatures.
