The Supreme Court of New Jersey updated the amounts used in the state’s child support guidelines, effective June 1, 2022. Our most recent update incorporated the very latest guideline rules into Family Law Software.
Here are the key changes.
The self-support reserve increased from $372 to $392 per week. (The self-support reserve is 150% of the poverty guideline for one person.)
Net Income Thresholds for Limited Household Income
The net income thresholds for limited household income increased. (These thresholds are 200% of the poverty guideline.)
|# people in household||Old income threshold||New income threshold|
Child Care Tax Credit
Under the revised guideline, the child care credit is calculated using the 2021 federal rules. That means the maximum child care subject to federal tax credit increased from $3,000 to $8,000 for one child and from $6,000 to $16,000 for two or more children. The Federal Child Care Tax Credit Table has also been updated.
In addition, the New Jersey State Child Care Tax Credit Table has been updated. The changes allow higher incomes to qualify for a percentage of the federal child care credit. For example, a $30,000 income now allows for 50% of the federal credit, while it previously would have allowed for 40% of the credit. The table previously topped out at an income level of $60,000, but the updated table now allows parents with incomes up to $150,000 a percentage of the federal credit.
Combined Tax Withholding Table
The Combined Tax Withholding Table (Appendix IX-H) has been updated.
The Appendix IX-H table is one of several built-in ways to compute taxes in FLS. The other methods are Circular E and Actual 1040. The Appendix IX-H and Circular E methods approximate the tax amount using a withholding table, while the Actual 1040 method is closer to an actual tax calculation, based on the specific family and financial information entered in FLS.
For more information on how to compute taxes for use in New Jersey child support calculations using FLS, see here and here.