NJ Families May Be Eligible For Another Tax Credit In July

NEW JERSEY — July could provide a financial windfall for New Jersey taxpayers with children as a Garden State and federal plan could see working families receive a more than a few hundred dollars to boost to their accounts.

Many will start receiving $300 monthly payments beginning July 15 as part of the federal American Rescue Plan approved earlier this year and some of those may also receive the $500 rebate set to be codified in the New Jersey budget.

Both payments would arrive in July.

The American Rescue Plan will see taxpayers receive payments of $300 per month for children between ages 0 and 5 and $250 children aged 6 to 17. The payments will continue through the end of the year, with the remainder of the tax credit being applied to your 2021 tax bill. The total allowed under the Child Tax Credit is $3,600 for children 0 to 5 and $3,000 for children 6 to 17.

Families qualify for the credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household and $150,000 for people who are married and filing jointly. This plan is an increase in the existing Child Tax Credit and those who do not qualify for the lower income levels still will receive the existing credit.

In New Jersey, the deal struck by lawmakers includes a $500 rebate to married parents filing a joint tax return or who identify as head of household or as a surviving spouse. The parents must have at least one child and earn a maximum of $150,000. The rebate threshold is $75,000 for single parents or each parent who files separate returns. The parent must have a gross income tax liability greater than zero. Read More: $500 Rebate Checks Coming For NJ Residents: What We Know

In most cases, payments will be sent automatically. You do not need to take any action if you filed tax returns in 2019 or 2020, or if signed up to receive a stimulus check from the Internal Revenue Service. The payments will be sent via direct deposit. If the IRS does not have your direct deposit information, a check will be mailed.

Families who did not file a tax return for 2019 or 2020 and who did not use the IRS Non-filers tool last year to sign up for the Economic Impact Payments, should go online and use the IRS Child Tax Credit Non-filer Sign-up Tool to sign up.

Nationwide, roughly 39 million households, covering almost 90 percent of children in the United States, will begin getting this relief automatically.

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