Legislators consider making larger child tax credit permanent

The new broader tax credit has been so popular with taxpayers that legislators would like to make the changes permanent. 

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A non-profit group called SaverLife has taken a hard look at how their members have used the new, beefier child tax credit. Quick primer: Families have traditionally had a credit with the IRS for children, but this year they get more money and it comes monthly as a direct deposit. 

Radha Seshagiri from SaverLife says their fintech group helps families create savings. And the child tax credit has helped, she says. 

"What we see is they expanded the child tax credit that comes in monthly really helps fill that gap for families that are doing everything to provide. But there are often gaps, and families have to make and face impossible choices."

Eighty-percent of their members are women. And 83 percent of them use this extra monthly stipend to cover basic bills like rent and groceries. One woman told SaverLife that she makes $8 an hour. Her rent went up to $1,500, and she can’t cover that and life. The tax credit helps bridge the gap. 

Here is what Georgia woman have to say about the program. Jennifer says it helps her make it to each paycheck. For Andromeda, it covers household bills. And Lauren remarks that the hidden costs like a cavity for children, a new lunch box, or after-school activities are covered by the new child tax credit money.

Prices for about everything have gone up. Here’s a hidden cost that adds up: There is a bus driver shortage nationwide. Single parents nationwide have to unexpectedly pick up their children from school. And that wrecks the gas budget.  

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