It is almost tax day (April 18th!), and I know that for many Americans it is not necessarily a day to look forward to. Thanks to the American Rescue Plan – passed by Congress and signed into law by President Biden – many will feel the continued benefit of the historic expansions of the Child Tax Credit (CTC), the Earned Income Tax Credit, and the Child and Dependent Care Credit.
While most American families already received six months of CTC payments last year – up to $300 per child per month – there is still more benefit to come at tax time. And if you have not received any payments, there are still thousands of dollars left on the table for you to claim. To realize the full impact of the child tax credit, you must file a tax return, even if you do not do so regularly.
As part of filing your taxes, you will receive the remainder of your CTC payments and, if you qualify, you will also receive the earned income tax credit, and up to $8,000 per family to cover the costs of child and dependent care.
The benefits of the this legislation have been numerous. Just by expanding the Child Tax Credit in the American Rescue Plan –
- 90 percent of kids and their families across the country saw monthly payments of up to $300 for every child in their household under age six, and $250 for every child in the household ages six through 17.
- We cut the child poverty rate in America by 30% between June and December 2021, keeping about 3.7 million children out of poverty.
- We sent checks directly to 82 percent of New Jersey kids and their families – 1.7 million children – and it’s going to lift 89,000 New Jersey kids out of poverty.
I hope this year you will find much needed relief when filing taxes. These programs were just temporary, but I will continue to work in the Senate to make these changes – amounting to one of the largest middle class tax cuts in history – permanent.
Cory A. Booker
United States Senator