2019 New Jersey Revised Statutes
Title 54A - New Jersey Gross Income Tax Act
Section 54A:4-17 - Certain credits permitted.
54A:4-17 Certain credits permitted.
5. a. A resident taxpayer with New Jersey taxable income of $60,000 or less who is allowed a credit for expenses for household and dependent care services for federal income tax purposes pursuant to section 21 of the Internal Revenue Code (26 U.S.C. s.21) shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The credit shall be in an amount equal to a percentage of the credit allowed the taxpayer for federal income tax purposes for the taxable year, according to the following schedule:
NJ taxable income is: Amount of 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 credit allowed by this section for a taxable year shall not exceed $500 for employment-related expenses paid by the taxpayer for one qualifying individual and $1,000 for employment-related expenses paid by the taxpayer for two or more qualifying individuals. The $60,000 income limit set forth in this subsection shall apply to taxpayers of any filing status.
b. A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than zero.
c. Married couples shall file a joint return in order to claim the credit provided by this section. A taxpayer eligible to receive a credit pursuant to paragraph (3) or (4) of subsection (e) of section 21 of the federal Internal Revenue Code (26 U.S.C. s.21) shall be eligible for the credit provided by this section, provided the taxpayer satisfies the income limit set forth in subsection a. of this section.
d. In the case of a part-year resident claimant, the amount of the credit allowed pursuant to this section shall be pro-rated, based upon that proportion which the total number of months of the claimant's residency in the taxable year bears to 12 in that period. For this purpose, 15 days or more shall constitute a month.
L.2018, c.45, s.5.
