According to Washington University researchers, 94% of parents now wants to continue working after they received the first tax credit installment in July. The group of researchers also included research teams from the Humanity Forward, the Urban Institute, UNC-Greensboro.
The new enhanced Child Tax Credit (CTC) takes effect this year year, entitling families to receive up to $3,000 [n 2021, per qualifying child ranging between ages 6 and 17. Families with children aged below 6, will be receive $3,600 for each below-6 child, at the end of the year.
The U.S Treasury Department and IRS reported that around $15 billion has been credited to the bank accounts of 35.2 million families in the country, as the earliest advance child tax credit payments. The IRS added that the average amount received as first installment is $423, which can help approximately 60 million children.
Treasury Secretary Janet Yellen remarked that this is the first time in the history of America that working families received monthly tax relief payments that can help families pay for essential expenses. including groceries, school supplies, and doctor’s visits. Ms. Yellen considers this as the first step in beginning down the country’s child poverty rate, which is not only a notable economic improvement but also a moral victory.
Survey Reveals the Significance of the CTC to Other Families
While the majority of working Americans have been motivated to engage in more work, 6.4% of the respondents to the survey plan to do the opposite. To them, the CTC means they will be able to work for fewer hours or find employment that requires less hours of work so they can spend more time looking after their children. About 20% will use the credit as means to stay home and let their spouse work, while 11.2%, mostly parents of toddlers and infants said that the CTC will change their work status.
Social Work associate professor Leah Hamilton of Appalachian State believes it’s important for parents, particularly mothers, to meet the caretaking requirements of their children. Hamilton added receiving tax credits would aid families in raising their children with a better footing whilst still making long-term contributions to the country’s economy.