Tax Tip #238

NJ residents can claim up to $1,000 per child under the age of five by the end of the tax year if taxable income is $80,000 or less. Married filing separately (MFS) status does not qualify. If income is $30,000 or less, then the credit is the full $1,000. The credit phases out as the income increases from $30,000 to $80,000. 

Similarly, full-year residents of NY could receive a credit equal to 33 percent of the federal child tax credit, or $100 per qualifying child, whichever is greater. Taxpayers who do not claim the federal credit can claim $100 for each child. The child must be under the age of 17 by the end of the year. The income limits to qualify are $110,000 for married filing jointly, $75,000 for single, and $55,000 for MFS. 

Other states that offer child tax credits include: AZ, CA, CO, ID, MA, MD, ME, MN, NM, OK, OR, UT, VT and DC.