Tax Policy Center

Options to Expand Refundability of Child Tax Credit (December 2022)

Campaigns, Proposals, and Reforms: Revenue Tables
Table shows the impact on federal tax revenue for fiscal years 2023-32 of four options to expand refundability of the child tax credit (CTC). Options are: repeal earned income threshold; repeal refundability limit enacted by the 2017 Tax Act; increase the refundability rate from 15 to 30 percent; and all three options combined.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Level
Table shows the change in the distribution of federal taxes, by expanded cash income level in 2023, of repealing the child tax credit (CTC) earned income threshold of $2,500. Under the proposal, the credit amount would be potentially refundable beginning with the first dollar of earned income.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Percentile
Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2023, of repealing the child tax credit (CTC) earned income threshold of $2,500. Under the proposal, the credit amount would be potentially refundable beginning with the first dollar of earned income.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Level
Table shows the change in the distribution of federal taxes, by expanded cash income level in 2023, of repealing the child tax credit (CTC) refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Percentile
Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2023, of repealing the child tax credit (CTC) refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Level
Table shows the change in the distribution of federal taxes, by expanded cash income level in 2023, of increasing the child tax credit (CTC) refundability rate from 15 to 30 percent.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Percentile
Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2023, of increasing the child tax credit (CTC) refundability rate from 15 to 30 percent.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Level
Table shows the change in the distribution of federal taxes, by expanded cash income level in 2023, of repealing the child tax credit (CTC) earned income threshold of $2,500. Under the proposal, the credit amount would be potentially refundable beginning with the first dollar of earned income. Proposal would also repeal the refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable. Proposal would also increase the refundability rate from 15 to 30 percent.
December 14, 2022
Campaigns, Proposals, and Reforms: Distribution Tables by Income Percentile
Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2023, of repealing the child tax credit (CTC) earned income threshold of $2,500. Under the proposal, the credit amount would be potentially refundable beginning with the first dollar of earned income. Proposal would also repeal the refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable. Proposal would also increase the refundability rate from 15 to 30 percent.
December 14, 2022
Campaigns, Proposals, and Reforms: Other Tables
Table shows the distribution of tax units with CTC-eligible children and CTC-eligible children by amount of Child Tax Credit, and the distribution of tax units with ODTC-eligible dependents and ODTC-eligible dependents by amount of Child Tax Credit, under a proposal where the credit amount would be potentially refundable beginning with the first dollar of earned income. Proposal would also repeal the refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable. Proposal would also increase the refundability rate from 15 to 30 percent.
December 14, 2022