The income tax provisions related to families and work—filing status, rate schedules, the standard deduction, personal exemptions, the child and earned income tax credits, and the taxation of dependents—are complex, too small to encourage work for many low earners, and unfair to some families....
Donald Trump’s tax plan would cost about $6 trillion over 10 years. Trump claims his plan would cut taxes for every income group, with the largest tax cuts for working- and middle-class families. But despite its enormous price tag, his plan would actually significantly raise taxes for millions...
This brief analyzes seven options for Child Tax Credit reform that would (1) make the CTC more consistent with other parts of the tax code; (2) target additional benefits to young children; or (3) broadly increase the credit for most current recipients.
The American family is changing. Individuals marry later, divorce more frequently, or live together without being married. Nonmarital births, complex custody arrangements, and multiple generations of families living together are more common, but the tax system has not kept pace. Although tax...
The federal child tax credit provides a credit of up to $1,000 per child under age 17; the refundable portion of the credit, which is crucial for low-income families, is limited to 15 percent of earnings above a defined threshold. That threshold is set to increase from $3,000 to almost $15,000...
This Tax Fact explores the child tax credits refundability thresholds since its inception. Currently, the CTC is a $1,000-per-child credit that is partially refundable for households earning more than $3,000. This Tax Fact explores the distribution of credits when the refundability threshold...
This document reviews several notable tax proposals in President Obamas fiscal year 2015 Budget. These include expanding the earned income tax credit (EITC) for workers without qualifying children, expanding the child and dependent care tax credit for families with young children, conforming...
Senator Mike Lee's Family Fairness and Opportunity Tax Reform Act (S.1616) would significantly expand tax benefits for children, repeal the alternative minimum tax, and repeal the Affordable Care Act surtaxes on earnings and net investment income. To partially offset the cost of these provisions...
The federal income tax system provides substantial benefits to families with children. In 2013, the Tax Policy Center estimates that five major child-related tax benefits the earned income tax credit (EITC), the child tax credit, the child and dependent care tax credit, the dependent exemption,...
The individual income tax contains multiple provisions that favor families with children. They range from credits targeted towards low-income families to deductions that favor higher income families. Some provisions benefit a family by virtue of the family having children, others try to...
An Option to Reform the Income Tax Treatment of Families and Work
The income tax provisions related to families and work—filing status, rate schedules, the standard deduction, personal exemptions, the child and earned income tax credits, and the taxation of dependents—are complex, too small to encourage work for many low earners, and unfair to some families....
Families Facing Tax Increases Under Trump's Tax Plan
Donald Trump’s tax plan would cost about $6 trillion over 10 years. Trump claims his plan would cut taxes for every income group, with the largest tax cuts for working- and middle-class families. But despite its enormous price tag, his plan would actually significantly raise taxes for millions...
Reforming the Child Tax Credit: An Update
This brief analyzes seven options for Child Tax Credit reform that would (1) make the CTC more consistent with other parts of the tax code; (2) target additional benefits to young children; or (3) broadly increase the credit for most current recipients.
Increasing Family Complexity and Volatility: The Difficulty in Determining Child Tax Benefits
The American family is changing. Individuals marry later, divorce more frequently, or live together without being married. Nonmarital births, complex custody arrangements, and multiple generations of families living together are more common, but the tax system has not kept pace. Although tax...
Reforming the Child Tax Credit: How Different Proposals Change Who Benefits
The federal child tax credit provides a credit of up to $1,000 per child under age 17; the refundable portion of the credit, which is crucial for low-income families, is limited to 15 percent of earnings above a defined threshold. That threshold is set to increase from $3,000 to almost $15,000...
Implications for Changing the Child Tax Credit Refundability Threshold
This Tax Fact explores the child tax credits refundability thresholds since its inception. Currently, the CTC is a $1,000-per-child credit that is partially refundable for households earning more than $3,000. This Tax Fact explores the distribution of credits when the refundability threshold...
Analysis of Specific Tax Provisions in President Obama's FY2015 Budget
This document reviews several notable tax proposals in President Obamas fiscal year 2015 Budget. These include expanding the earned income tax credit (EITC) for workers without qualifying children, expanding the child and dependent care tax credit for families with young children, conforming...
Preliminary Analysis of The Family Fairness and Opportunity Tax Reform Act
Senator Mike Lee's Family Fairness and Opportunity Tax Reform Act (S.1616) would significantly expand tax benefits for children, repeal the alternative minimum tax, and repeal the Affordable Care Act surtaxes on earnings and net investment income. To partially offset the cost of these provisions...
Child-Related Benefits in the Federal Income Tax
The federal income tax system provides substantial benefits to families with children. In 2013, the Tax Policy Center estimates that five major child-related tax benefits the earned income tax credit (EITC), the child tax credit, the child and dependent care tax credit, the dependent exemption,...
A Reference Manual for Child Tax Benefits
The individual income tax contains multiple provisions that favor families with children. They range from credits targeted towards low-income families to deductions that favor higher income families. Some provisions benefit a family by virtue of the family having children, others try to...