South Carolina residents received $254.8M in child tax-credit payments in August

State - Regional

COLUMBIA, S.C. (WBTW) – An estimated 577,000 federal child tax-credit payments totaling $245.8 million were sent to South Carolinians in August, according to a report from the U.S. Joint Economic Committee.

South Carolina Rep. James E. Clyburn, a Democrat, helped pass the monthly tax credit payments, which are aimed at helping families recover from the COVID-19 pandemic by helping them with the high costs of child care. The average payment per South Carolina household was $426.

“When we passed the American Rescue Plan in March, we called it a rescue plan for a reason,” Clyburn said in a news release. “These Child Tax Credit payments have been a lifeline to many families across South Carolina and have enabled them to pay for basic needs such as transportation, food, and school expenses for their children. We ought to build on the tremendous progress we have made for families and extend the tax cut for families with children.”

The American Rescue Plan dramatically increased the value of the child tax credit from $2,000 per child to up to $3,600 per child younger than six and $3,000 per child six or older. The ARP also made the tax credit fully refundable. As a result, previously ineligible low-income families are now able to receive the full credit.

The report also estimates that the expanded tax credit is generating more than $19 billion in local economic activity each month nationwide, supporting local businesses and jobs, Clyburn said in the news release.

Among families who responded to a U.S. Census Bureau’s survey, 47% said they spent their payment
on food, 28% spent it on internet service and other utilities, 26% spent it on school expenses and
17% of those with at least one child younger than 5 spent it on child care.

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