: Research report

Boosting Wages or Helping Children? Understanding How New Earnings and Child Tax Credit Proposals Impact Income Inequality and Vulnerable Children

The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9 million
July 23, 2020Elaine MaagRobert McClellandC. Eugene Steuerle
Individual Taxes: Brief

Comparing the EITC and Child Tax Credit Proposals

Exploring Design Changes to Retarget Tax Credits
The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9 million
July 23, 2020Elaine MaagRobert McClellandC. Eugene Steuerle
Individual Taxes: TaxVox

The IRS Delivered Economic Impact Payments In Record Time, So Why Haven’t Some Needy Families Gotten Their Money?

With Congress about to debate a second round of stimulus payments for tens of millions of people, it is important to review some lessons about...
July 23, 2020Janet Holtzblatt
Federal Budget and Economy: Virtual Event

The Prescription: Fiscal Policy for the COVID-19 Economy with Lisa Cook

This week’s guest: Lisa D. Cook The Urban-Brookings Tax Policy Center is holding a series of online conversations on policy responses to the COVID-19 economy...
July 23, 2020
: Daily Deduction

Where Will The Senate Go Next on Stimulus?

With the Senate GOP in disarray, is a temporary unemployment extension in the cards?
July 23, 2020Renu Zaretsky
Individual Taxes: Administration and ComplianceEnforcement: Examinations

Examination Coverage: Recommended and Average Recommended Additional Tax After Examination, by Type and Size of Return, by Fiscal Year

The IRS has discontinued this table; 2019 data is the most recent available. Related data for more recent years can be found here .
July 23, 2020
: Daily Deduction

A Preview, A Push, Plans, and Paydowns

GOP previews its coronavirus relief package.
July 22, 2020Renu Zaretsky
Individual Taxes: TaxVox

How Would Paydown Affect The Reform Of Home Mortgage Interest Deduction?

Reforming the mortgage interest deduction (MID) could raise federal tax revenue and make the tax system more progressive. But some taxpayers, especially those with high...
July 21, 2020Chenxi LuEric Toder
: Daily Deduction

Slow Progress and A Denial

The next GOP stimulus bill is starting to come together.
July 21, 2020
State and Local Issues: Brief

California’s State and Local Revenue System

On November 3, 2020, Californians will vote on Proposition 15, also known as the California Schools and Local Communities Funding Act of 2020. The proposition would require commercial and industrial properties to be taxed based on their market value rather than on their purchase price. This brief
July 20, 2020Richard C. AuxierTracy GordonKim S. Rueben
State and Local Issues: Brief

California’s K–12 Education Needs

On November 3, 2020, Californians will vote on Proposition 15, also known as the California Schools and Local Communities Funding Act of 2020. The proposition would require commercial and industrial properties to be taxed based on their market value rather than on their purchase price. This brief
July 20, 2020Kim S. RuebenRichard C. AuxierTracy Gordon
State and Local Issues: Brief

California’s Infrastructure Challenges

On November 3, 2020, Californians will vote on Proposition 15, also known as the California Schools and Local Communities Funding Act of 2020. The proposition would require commercial and industrial properties to be taxed based on their market value rather than on their purchase price. This brief
July 20, 2020Tracy GordonRichard C. AuxierKim S. Rueben
: Daily Deduction

Back to Work on Coronavirus Relief

But the White House and the Senate GOP remain at odds.
July 20, 2020Renu Zaretsky
Social Security benefits are an important source of income for households with lower incomes. In 2017, benefits comprised 15% of total adjusted gross income (AGI) for those with AGI under $50,000, compared to less than 1% for those with AGI over $500,000.
July 20, 2020
Individual Taxes: Research report

Expanding Modeling Capacity on Tax Expenditures for Homeownership

Technical Methodology Report
This report describes the Tax Policy Center (TPC) Microsimulation Model’s revamped home mortgage interest deduction (MID) module. The TPC tax model uses the module for simulating proposals that reform the MID. The new MID module improves upon the prior one in accounting for potential changes in
July 17, 2020Surachai KhitatrakunEric ToderRobert McClellandChenxi Lu
Individual Taxes: Brief

Who Did Not Get the Economic Impact Payments by Mid-to-Late May, and Why?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided most US households with one-time economic impact payments to mitigate the negative economic effects of the COVID-19 pandemic. The Internal Revenue Service was responsible for distributing the payments, which were rapidly
July 16, 2020Janet HoltzblattMichael Karpman
Individual Taxes: TaxVox

Where Is My Income Tax Refund?

Hope you had a Happy Tax Day. I’m still waiting for my refund. I filed my 2019 individual income tax return electronically on May 1...
July 16, 2020Howard Gleckman
Business Taxes: Brief

Tax Incentives for Pass-Through Income

This chartbook explores the implications of the tax-advantaged treatment of pass-through income enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA). Section 199A of the TCJA allows a deduction from taxable income of 20 percent of certain pass-through income. We look specifically at the
July 15, 2020Benjamin R. PageJeffrey RohalyThornton MathesonAravind Boddupalli
Business Taxes: Distribution Tables by Income Level

T20-0226 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2019

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law, by income level for 2019.
July 15, 2020
Business Taxes: Distribution Tables by Income Percentile

T20-0227 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2019

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law, by income percentile for 2019.
July 15, 2020
Business Taxes: Distribution Tables by Income Level

T20-0228 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law Plus Permanent Extension of QBI Deduction, Distribution of Federal Tax Change by Expanded Cash Income Level, 2026

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law plus permanent extension of the deduction, by income level for 2026.
July 15, 2020
Business Taxes: Distribution Tables by Income Percentile

T20-0229 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law Plus Permanent Extension of QBI Deduction, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2026

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law plus permanent extension of the deduction, by income percentile for 2026.
July 15, 2020
Business Taxes: Distribution Tables by Income Level

T20-0230 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law Plus Permanent Extension of QBI Deduction, Distribution of Federal Tax Change by Expanded Cash Income Level, 2030

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law plus permanent extension of the deduction, by income level for 2030.
July 15, 2020
Business Taxes: Distribution Tables by Income Percentile

T20-0231 - Tax Benefit of the Sec199A Deduction for Qualified Business Income (QBI); Baseline: Current Law Plus Permanent Extension of QBI Deduction, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2030

Distribution of the tax benefits of the section 199A deduction for qualified business income under current law plus permanent extension of the deduction, by income percentile for 2030.
July 15, 2020
Business Taxes: Distribution Tables by Income Level

T20-0222 - Make Sec199A Deduction for Qualified Business Income (QBI) Permanent: Distribution of Federal Tax Change by Expanded Cash Income Level, 2026

Impact on the distribution of federal tax burden from permanently extending the section 199A deduction for qualified business income relative to current law, by income...
July 15, 2020