{"id":3928,"date":"2021-12-22T19:06:52","date_gmt":"2021-12-22T19:06:52","guid":{"rendered":"https:\/\/www.ua-cpas.com\/blog\/?p=3928"},"modified":"2021-12-22T19:06:52","modified_gmt":"2021-12-22T19:06:52","slug":"increased-nj-child-care-credit-for-2021","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2021\/12\/22\/increased-nj-child-care-credit-for-2021\/","title":{"rendered":"Increased NJ Child Care Credit for 2021!"},"content":{"rendered":"<p>More NJ families will benefit in 2021 from the\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-3929\" src=\"https:\/\/www.ua-cpas.com\/blog\/wp-content\/uploads\/2021\/12\/childcare-3.jpg\" alt=\"\" width=\"275\" height=\"183\" \/><\/p>\n<p><span style=\"color: #800080;\">Child and Dependent Care Credit<\/span>.<\/p>\n<p>The taxable income threshold has increased to $150,000, from $60,000 in 2020. Resident taxpayers who are allowed a federal child tax credit are eligible for a credit against their NJ gross income tax<\/p>\n<p>The credit will reduce the amount of New Jersey Gross Income Tax a taxpayer owes and may result in a refund even if no taxes are owed. Taxpayers may be able to claim the New Jersey Child and Dependent Care Credit if they:<\/p>\n<ul>\n<li>Paid expenses for the care of one or more qualifying individuals so that they are able to work or actively look for work;<\/li>\n<li>Are allowed the federal child and dependent care credit; and<\/li>\n<li>Have New Jersey taxable income of $150,000 or less.<\/li>\n<\/ul>\n<p>The amount of the NJ credit is a percentage of the taxpayer\u2019s federal child and dependent care credit and varies according to the amount of the taxpayer\u2019s NJ taxable income.<\/p>\n<table style=\"height: 488px;\" width=\"598\">\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"312\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <strong><span style=\"color: #800080;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Tax Year 2021<\/span><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"148\"><strong>\u00a0 \u00a0 \u00a0 \u00a0 <span style=\"color: #800080;\">NJ taxable income<\/span><\/strong><\/td>\n<td width=\"164\"><strong>\u00a0 \u00a0 \u00a0<span style=\"color: #800080;\"> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0NJ Credit<\/span><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"148\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 0 to $30,000<\/td>\n<td width=\"164\">\u00a050% of federal credit<\/td>\n<\/tr>\n<tr>\n<td width=\"148\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0$30,001\u00a0 to\u00a0\u00a0 $60,000<\/td>\n<td width=\"164\">40% of federal credit<\/td>\n<\/tr>\n<tr>\n<td width=\"148\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0$60,001\u00a0 to\u00a0\u00a0 $90,000<\/td>\n<td width=\"164\">30% of federal credit<\/td>\n<\/tr>\n<tr>\n<td width=\"148\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $90,000\u00a0 to\u00a0\u00a0 $120,000<\/td>\n<td width=\"164\">20% of federal credit<\/td>\n<\/tr>\n<tr>\n<td width=\"148\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0$120,001 to $150,000<\/td>\n<td width=\"164\">10% of federal credit<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>This increased child care credit provides more relief to working families and is <span style=\"color: #800080;\">only for 2021<\/span>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More NJ families will benefit in 2021 from the\u00a0 Child and Dependent Care Credit. The taxable income threshold has increased to $150,000, from $60,000 in 2020. Resident taxpayers who are allowed a federal child tax credit are eligible for a credit against their NJ gross income tax The credit will reduce the amount of New [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[254,149],"class_list":{"0":"post-3928","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tax-tips-for-individuals","7":"tag-child-care-credit","8":"tag-nj-income-taxes","9":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=3928"}],"version-history":[{"count":3,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3928\/revisions"}],"predecessor-version":[{"id":3932,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3928\/revisions\/3932"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=3928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=3928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=3928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}