The credit was enacted last year as part of the Recovery Act to put more cash in people’s pockets.
For the past two years, it has boosted paychecks by up to $400 for single filers and $800 for joint filers
by reducing the tax withheld and giving a credit for that amount.
Taxpayers who make $75,000 or less are eligible for the full credit, while higher earners can receive partial credit. More than 90% of working Americans have been helped by the tax break.
Now they will feel the pain when the credit goes away.
A Senate Finance Committee aide said panel chairman Max Baucus, a Montana Democrat, is working on a proposal to extend a number of expiring tax breaks when Congress returns next week.
Obama proposed an extension months ago, but it’s unclear if the administration will fight for it now.