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Information on
Novel Coronavirus

Have questions about COVID-19?
The NJ Poison Control Center and 211 have partnered with the State to provide information to the public on COVID-19:
Call: 2-1-1 for general information (24/7) or 1-800-962-1253 for medical information (24/7); Text: NJCOVID to 898-211
Visit covid19.nj.gov or nj.gov/health for additional information

Division of Taxation

COVID-19 Related Tax Information
Information about the Federal Economic Impact Payment – Stimulus Check
Important Information About Retail COVID-19 Fees and Sales Tax

Child and Dependent Care Credit (P.L. 2018, c.45)

We understand the enormous financial strain child care costs can place on working families. Under a new law signed in 2018, roughly 70,000 New Jersey taxpayers are eligible for relief through the establishment of a Child and Dependent Care Tax Credit.

Under the law, eligible resident taxpayers who are allowed a federal credit for expenses they incur for the care of one or more qualifying individuals are now eligible for a credit against their New Jersey Gross Income Tax. A qualifying individual can be a child under age 13 or a spouse or dependent who lived with the taxpayer for more than half the year and is physically or mentally incapable of self-care.

Information on how to claim the Child and Dependent Care Credit can be found on page 34 of the NJ-1040 Instructions.

The credit will reduce the amount of New Jersey Gross Income Tax a taxpayer owes, but won't result in a refund if no taxes are owed. Taxpayers may be able to claim the New Jersey Child and Dependent Care Credit if they:

  • Paid expenses for the care of one or more qualifying individuals so that they are able to work or actively look for work;
  • Are allowed the federal child and dependent care credit; and
  • Have New Jersey taxable income of $60,000 or less.

The amount of the New Jersey credit is a percentage of the taxpayer's federal child and dependent care credit and varies according to the amount of the taxpayer's New Jersey taxable income.

If NJ taxable income is: Amount of the NJ credit is:
Not over $20,000 50% of federal credit
over $20,000 but not over $30,000 40% of federal credit
over $30,000 but not over $40,000 30% of federal credit
over $40,000 but not over $50,000 20% of federal credit
over $50,000 but not over $60,000 10% of federal credit

The maximum New Jersey credit cannot exceed $500 for one qualifying individual or $1,000 for two or more qualifying individuals.

Daycare

Last Updated: Thursday, 02/20/20