How do the impacts of tax policies vary by race and ethnicity? Q.How do the impacts of tax policies vary by race and ethnicity? A.The IRS does not ask for tax filers’ race or ethnicity on tax forms, but that does not mean the tax system affects people of different races and ethnicities similarly. Read more about How do the impacts of tax policies vary by race and ethnicity?
What is the adoption tax credit? Q.What is the adoption tax credit? A.The tax code provides an adoption credit of up to $15,950 for qualified adoption expenses in 2023. The credit is available for each child adopted, whether via public foster care, domestic private adoption, or international adoption. The total amount of adoption credits for tax year 2020 was around $322 million. Read more about What is the adoption tax credit?
How does the tax system subsidize child care expenses? Q.How does the tax system subsidize child care expenses? A.Working parents are eligible for two tax benefits to offset child care costs: the child and dependent care tax credit and the exclusion for employer-provided child care. The credit benefits only a small share of parents because relatively few have formal child care expenses that qualify for the credit. Read more about How does the tax system subsidize child care expenses?