Enhanced Child Tax Credit 2022 Extension Heads to the Senate, Markey Believes It Could Be Permanent

The House Democrats have successfully passed the enhanced child tax credit (CTC) for another year, and as the bill heads to the Senate before it's signed into law, Sen. Ed Markey believes that the program could become permanent.

During his engagement at the Boston Medical Center on Monday, November 22, Markey said that the enhanced child tax credit has lifted three million kids out of poverty for 2021; thus, its extension for 2022 should be "non-negotiable." The senator also added that they have a moral obligation towards American families to ensure that the final version of this program is included in the Build Back Better Act proposed by President Joe Biden. 

"We've now seen the evidence of the impact the Child Tax Credit has, so we don't want to go backward," Markey said.  

Read Also: Child Tax Credit Extension, Originally Until 2025, Could Be Cut to Just One Year

What Parents Can Expect for CTC 2022

Under the Build Back Better Act, the enhanced child tax credit will retain the increased amounts parents received for the 2021 tax season. This means that for 2022, taxpayers with kids can receive between $3,000 to $3,600 in credits. 

However, unlike the current setup, which was distributed in six monthly payments from July to December, the 2022 extension will be distributed every month. The extension will also drop the Social Security number requirements so non-citizens living in the U.S. could file a claim.  

In 2021, refundability for the enhanced child tax credit was only partial, but it will be fully refundable for 2022 for claimers who have lived in the U.S. or Puerto Rico for more than six months. 

Biden originally planned to retain the enhanced child tax credit until 2025, or until the end of his first four years as president, but this was trimmed down to just one year as the House Democrats deliberated on the entire Build Back Better budget Act. According to reports, this bill might encounter some pushback from Democratic Sen. Joe Manchin, who stated that the child tax credit beneficiaries must have an income cap of below $60,000 a year.

Manchin's Work Requirement

According to CNBC, not a lot is known about Machin's work requirement, but some argue that the senator's criteria eliminate a lot of groups who could use the extra money, such as parents who do not work due to a disability or retired grandparents with grandchildren as dependents.  

While Manchin's work requirement could mean 37 million children could lose the benefit, Markey is confident that the bill will be passed as it is currently structured at the House. Markey said they would be pressing Manchin to accept the expanded child tax credit without the work requirement criteria. 

Markey also said that Biden would have discussions with his colleague. The rest of the senators are committed to working hard to resolve this issue before the holidays. 

According to the non-profit StreetCred, the enhanced child tax credit has been transforming lives. The agency has actual proof of 200 families with newborns who benefitted from the program and used the money for food, medicine, childcare, and rent payments. 

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