Child Tax Credit Blows Up On TikTok
Type in “child tax credit” or “ctc” into TikTok and you’ll be flooded with videos of parents celebrating their first checks of the Advance Child Tax Credit.
See: How Do You Plan To Spend the Child Tax Credit? Take Our Poll
Find: Direct Deposit Deadline for August’s Child Tax Credit Payment
After the first monthly payments hit bank accounts on July 15, parents throughout the country have been rejoicing in what has now turned into millions of views.
This could be good news for parents in the long run. The popularity of the advance payment could potentially give the Biden administration the legs it needs to make the credit last through 2025 as the president has been pushing for.
As of right now, the Advance Child Tax Credit is set to last through the end of 2021. Monthly installments for half the full benefit amount began distribution on July 15 and will last through December. Then, the other half of the benefit will be eligible to be claimed next year at tax time.
The policy is part of the American Rescue Plan stimulus relief bill. While there is a child tax credit available to parents every year, but average amounts usually add up to around $2,000 per eligible child in most cases. This year, as part of the bill, the full benefit amount for parents per eligible child is $3,600 for children under 6 years of age, meaning that $1,800 will be doled out in $300 monthly payments to those who qualify through December.
Parents have been rejoicing with memes and dances shared on the TikTok platform, but the attention could help with measures to put more permanent help for families in place.
See: How to Unenroll From Monthly Child Tax Credit Payments
Find: How To Use The Child Tax Credit Direct Deposit Portal
Forbes reports that colleagues at the Urban Institute estimate that the advance portion of the CTC alone will reduce the share of children in poverty from 13.7% to 11.3% and when coupled with another major piece of the relief bill, child poverty will fall overall to 6.5%.
Should the child poverty line fall to 6.5%, that would mean the child tax credit and relief bill help would drop to less than half of what it is today — and that’s reason to dance.
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This article originally appeared on GOBankingRates.com: Child Tax Credit Blows Up On TikTok
