A new study shows that the sharp increase in rates of child poverty are directly related to the child tax credit.
The study looked at the rate in which child poverty drastically increased between Dec. 2021 and Jan. 2022.
This is likely due to the advanced payments families could receive between July 2021 and Dec. 2021.
Families making more money received less.
In Dec., 61 million children from 36 million households received a payment.
The rate of child poverty is now the highest it’s been since 2020 ended.
Stimulus programs and unemployment greatly lowered poverty rates, and have since ended.
What happens with the child tax credit now?
Some states are helping residents out since the payments have ended.
In California families receive the Young Child Tax Credit.
Under this credit families receive $1,000 if they make under $25,000.
The credit is reduced if income is between $25,000 and $30,000.
Only kids under the age of 6 can qualify.
In Maine the credit is called the Dependent Exemption Tax Credit and gives parents $300 per child.
Maryland offers a credit and it’s worth $500.
The child must be under age 17 and have a disability with an income of less than $6,000.
New federal child tax credit proposal
Senator Mitt Romney has proposed a new child tax credit program that would help families out.
It’s called the Family Security Act and would give families $350 per month for kids under age 6 and $250 for kids ages 6-17.
The most families could get each month would be $1,250 per household.
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