Will there be a child tax credit in 2022? – NJ.com

More than 980,000 New Jersey families are in danger of losing their monthly checks from the federal government that have lifted thousands of children out of poverty and lowered taxes for others.

The expanded child tax credit, part of President Joe Biden’s $1.9 trillion coronavirus stimulus law that was passed over unanimous Republican opposition, expires at the end of the month. It would be expanded for another year in Biden’s 10-year, $1.75 trillion social spending bill, known as Build Back Better, that passed the House but remains held up in the Senate.

“This is urgent. Families are seeing their lives really affected in a positive way by the child tax credit,” U.S. Sen. Cory Booker told NJ Advance Media. “To have those checks stop in January because we haven’t been able to get a bill done that will get done is to me not acceptable.”

Rep. Rosa DeLauro, D-Conn., called the provision “a program that has been transformative that has been a game changer for families, the ability to provide that economic security” during a Zoom press conference Tuesday.

The stimulus bill increased the child tax credit to $3,600 for children under 6 and $3,000 for those 6-17 from $2,000. Instead of the entire credit being claimed on a family’s tax return, the Internal Revenue Service has sent out half of the credit in monthly payments of $300 a month for children up to age 6 or $250 for children ages 6-17.

For New Jersey, the monthly payments went to 984,000 families in October, according to the Center on Budget and Policy Priorities, a progressive research group. Individuals making up to $75,000 and married couples filing jointly making up to $150,000 receive the full credit. Benefits phase out for those who earn more.

The group said 257,000 New Jersey children were at risk of slipping back into poverty if the child tax credit payments end.

Both Biden and Vice President Kamala Harris touted the spending bill during trips to New Jersey in October. In addition to extending the child tax credit, the legislation would reduce health care and child care costs, take steps to address climate change, lower prescription drug prices, and restore at least part of the federal deduction for state and local taxes.

“The bottom line is: We’re helping working-class and middle-class people spend less money on the things they badly need,” Biden said Tuesday at a Democratic National Committee event in Washington. “So if you’re worried about rising cost, nothing will cut costs for American families more than the Build Back Better plan.”

Booker indicated that he would back an extension of the child tax credit immediately even if the rest of the social spending bill didn’t yet have enough support to get out of the Senate.

”I don’t want to see those checks stopped so i would support other options if we’re unable to get the Build Back Better done,” Booker said.

White House press secretary Jen Psaki said at her Tuesday briefing that the president was committed to passing the entire bill, including the child tax credit.

“Our focus on the legislative front is on Build Back Better and getting it done,” she said.

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

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