Monthly poverty rose in April and May 2022 after temporary tax time dip
Monthly poverty rates rose in April and May 2022, following the temporary dip in March when most refundable tax credits were delivered to families who filed a federal tax return. The monthly poverty rate for the total US population in April 2022 was 13.0 percent—up from 10.8 percent in March—and ticked up to 14.1 percent in May 2022. The monthly child poverty rate in April was 14.1 percent—up from 9.9 percent in March, when most Earned Income Tax Credit and the balance of expanded Child Tax Credit payments were delivered—and rose to 16.6 percent in May. The May 2022 child poverty rate reached levels similar to those seen earlier this year (16.7 percent in February and 17.0 percent in January 2022 in the wake of the expiration of the monthly expanded Child Tax Credit payments at the end of 2021.
January 2022 marked the first month after the American Rescue Plan’s expanded Child Tax Credit monthly payments and poverty rates increased sharply in response. Monthly child poverty was 4.5 percentage points (37.3 percent) higher in May 2022 than December 2021, representing 3.3 million additional children in poverty in May relative to December. Our work has shown that monthly benefit delivery has the power to smooth income volatility and reduce child poverty on a consistent basis year-round.
Suggested Citation:
Center on Poverty and Social Policy, Columbia University. 2021. Monthly poverty rose in April and May 2022 after temporary tax time dip. Monthly Poverty Update.
Published on June 27, 2022