Expanding the child tax credit (CTC) introduced in 2021 has led to improved health and nutrition among adults, a new study finds.
The expanded CTC increased the amount of the credit which means that families that don’t owe federal income taxes can still get the full amount of the credit
Research shows that an enlarged CTC leads to a 29% increase in the likelihood of adults reporting having enough food to eat, a 42% increase in the likelihood of adults reporting having enough money to pay for family living expenses, and an increase in 20% likelihood that adults report having enough money to pay for medical care. Additionally, the study found that when the CTC was expanded, adults were 10 percent more likely to report anxiety or depression and adults were 14 percent more likely to report sleep disturbances.
The CTC will expire at the end of 2021 but more and more people are advocating a permanent extension
Proponents argue that CLCs are an effective tool to reduce child poverty and improve the welfare of families with children. Furthermore, research shows that CTCs have broader benefits beyond reducing child poverty. By improving the health and nutrition of adults, CTCs can also save the healthcare system in the long run. Overall, the study provides strong evidence that enlarged CTCs have a positive impact on the well-being of families with children.