New Jersey would let taxpayers deduct work-related child care costs

New Jersey would let taxpayers deduct eligible child care costs from their income when calculating state income tax. The care must help the taxpayer work and must be for the taxpayer’s dependent child under 13. Taxpayers must pay the costs during the tax year. Household services, such as housekeeping, do not qualify. Taxpayers cannot claim both the deduction and the state tax credit for the same costs. The bill would take effect immediately if enacted. The deduction would apply to tax years beginning on or after January 1 of the year following enactment.