Credit Amount Taxpayers can receive a tax credit for all qualifying adoption expenses up to $15,950 in 2023. The maximum credit is indexed for inflation...
How the EITC Works The earned income tax credit (EITC) provides substantial support to low- and moderate-income working parents who claim a qualifying child based...
What Federal Tax Rates Do Low-Income Households Pay? Low-income households typically pay some federal tax. The largest tax burden for households in the bottom income...
Refundable Versus Nonrefundable Tax Credits The maximum value of a nonrefundable tax credit is capped at a taxpayer’s income tax liability. In contrast, taxpayers receive...
Tax Preparation for Low-Income Families Most people fill out their tax returns with assistance from paid preparers. In 2015, 53.8 percent of all returns were...
Improper Payments in the EITC Extrapolating from the IRS’s National Research Program compliance study of individual income tax returns for tax year 2009, the US...
Traditional IRAs versus Roth IRAs Workers and their spouses do not need to rely on their employers to save in tax-favored retirement accounts. They may...
A Roth IRA is a form of individual retirement account in which investors make contributions with after-tax earnings. Eligibility is limited by income. There’s still...
Tax-favored retirement savings accounts are popular: half of working adults take advantage of them. It’s unclear, however, whether the accounts make much difference to overall...