How the Temporary Boost in Child Tax Credit Helped Low-Income Families with Housing Stability
According to Axios Detroit, a new study from the University of Michigan shows that the temporary boost in the Child Tax Credit helped low-income families keep their homes. The boost, which started in March 2021, increased the credit to $3,600 per child under 6 and $3,000 for older kids. It also made part of the credit available in monthly payments instead of just during tax season, which helped 26 million children across the country.
The extra $100 a month from the boosted credit helped families reduce their unpaid rent by about 13% and their past-due rent by 3%. It also lowered the chance that families would need to move because of housing costs by around 13%. The study found that the credit helped some parents live more independently from ex-partners they might have stayed with for financial reasons.
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$3,600 to $3,000: How the Expanded Child Tax Credit Boosted Housing Stability for 26 Million Low-Income Families (PHOTO: Poverty Solutions – University of Michigan)
Impact of Expanded Child Tax Credit on Housing for Low-Income Families in Detroit
In cities like Detroit, where many people live in poverty, the extra credit made a big difference. The study looked at data from 20,500 parents using SNAP benefits and found that those earning less than $10,000 saw major improvements in their housing situation. Although the credit ended in 2022, the study shows it was very effective in helping families during a tough time.
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