Child tax credit 2021: Thousands of N.J. families could miss out on $300 payments – NJ.com

Thousands of New Jersey families could miss out on the expanded federal child tax credit because they haven’t filed tax returns with the Internal Revenue Service and don’t know how to claim the money, according to a report issued by a progressive research group.

The Center on Budget and Policy Priorities estimated that as many as 86,299 children in New Jersey could miss out on the credits, which could bring in $278 million and sharply reduce poverty. The expanded tax credits were included in President Joe Biden’s $1.9 trillion coronavirus stimulus law, passed over unanimous Republican opposition.

The center said that more than 55,000 are in households that currently do not file tax returns and therefore their names are not file with the IRS. Another 31,000 were recently born or are expected to be born this year to families on Medicaid, and therefore do not have names and Social Security numbers on the parents’ previous tax returns.

The state Department of Human Services is on the case, spokesman Tom Hester said.

“N.J .Human Services has been working with our social services partners to make as many people as possible aware that they may need to apply for the child care tax credit, and will continue to do so,” he said.

The IRS began sending out monthly payments to eligible families in July. They will continue receiving monthly checks of $350 for children under 6 and $300 for those ages 6-17 through Dec. 15. The rest of the credit of $3,600 for those under 6 and $3,000 for those ages 6-17 can be taken on next year’s tax return.

The stimulus law increased the credit from $2,000. Individuals with children who make up to $75,000 and married couples filing jointly with children making up to $150,000 will receive the full credit. Those who earn more will see their benefits eventually phase out.

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In New Jersey, more than 1.5 million children in the state are in families receiving the checks, according to figures released by the U.S. Treasury Department. Families are receiving the money automatically deposited in their bank accounts or by IRS check.

The center recommended that state and local officials, as well as agencies that already provide aid to low-income families such as food stamps and Medicaid, reach out to those families and help them register for the child tax credit.

While the expanded credit expires at the end of the year, Biden and congressional Democrats hope to extend it for several more years in their $3.5 trillion spending bill that they plan to pass through reconciliation, preventing a Senate Republican filibuster.

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Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him at @JDSalant.

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