New Jersey § 54a:4-17

§ 54a:4-17.

a. A resident taxpayer with New Jersey taxable income of $150,000 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. Not over $30,000 50% of federal credit over $30,000 but not over $60,000 40% of federal credit over $60,000 but not over $90,000 30% of federal credit over $90,000 but not over $120,000 20% of federal credit over $120,000 but not over $150,000 10% of federal credit. The $150,000 income limit set forth in this subsection shall apply to taxpayers of any filing

status. b. If the amount of the credit allowed pursuant to this section exceeds the amount of

gross income tax otherwise due pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. , the amount of excess shall be treated as a refundable overpayment. 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.