Strengthening the Child Care Tax Credit and Millennial Parents
Strengthening The Child Tax Credit Would Provide Greater Economic Stability For Millennial Parents by Sunny Frothingham
“Millennial adults, or Americans between the ages of 18 and 34, are facing greater financial pressures and economic insecurity compared with prior generations.* Millennials with children are especially likely to struggle to make ends meet.
Forty percent of Millennials are already parents, and that percentage is expected to double over the next 10 to 15 years. Children born to Millennial parents make up 80 percent of the 4 million annual births in the United States, and around 9,000 Millennial women give birth every day. Among the older half of the Millennial generation, 10.8 million households already have children.
The Child Tax Credit, or CTC, could play a key role in closing the gap for these young parents. Created to offset the costs of raising children, the CTC currently provides eligible families with up to $1,000 annually for each child under age 17, and it works together with other tax credits to boost economic stability for many low- and moderate-income families with children.
Right now, more than 14 million Millennial parents benefit from the low-income portion of the CTC or the Earned Income Tax Credit, or EITC, or both. But as discussed in further detail in this issue brief, key reforms to the CTC could enable it to better serve the group who needs it most: new Millennial parents.”