Here’s the Oregonian’s weekly look at the numbers behind the state’s economy. See past payments here.
Millions of US households, including more than 600,000 Oregon families, received payments last month thanks to an extension of the federal child tax credit.
President Joe Biden’s $ 1.9 trillion coronavirus relief program inflated the value of credit for most families, but it also included monthly checks or deposits to eligible families to accelerate the impact of credit during the pandemic. The payments are actually an advance based on government projections for next year’s tax returns.
The first advance payments – up to $ 300 per eligible child under 5 and up to $ 250 for children ages 6 to 17 – landed in mailboxes and direct deposit accounts in mid -July.
Families in Oregon received a total of $ 173.2 million in July, according to the Internal Revenue Service, with payments averaging $ 425.
So how have families in Oregon used this money?
According to new survey data from the US Census Bureau, the largest group – about 42% – used the money to pay off their debt. Another 32% said they saved most of their money. Only around 24% said they used most of it for shopping.
These responses are similar to those in the rest of the country, according to the survey.
The pattern is different from how Oregonians reported using their three rounds of stimulus payments in 2020 and 2021. Most spent the first of those payments immediately, then put the next two into savings.
Payments will continue until December, and the way families spend their child tax credit payments could change over time as pandemic conditions evolve, and with them the potential for greater economic benefits. .
Among families in Oregon who reported spending most of the child tax credit payments, the largest share said they spent it on food. The funds were also used for tuition, programs and school supplies; Clothes; mortgage or rent; utilities or other bills; and childcare.
The US bailout increased the amount of credit, expanded eligibility, and made it fully refundable for 2021, meaning families who owe no income tax can claim the full credit.
Parents are eligible for full payments if they earn up to $ 75,000 for single filers or $ 150,000 for joint filers. People who earn more will receive partial payments, reduced by $ 50 for every $ 1,000 of additional income.
Oregon Insight is a weekly snapshot of the numbers behind the state’s economy. See past payments here.