Child tax credit (CTC)/Child and dependent care tax credit (CDCTC)

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Research report
Individual Taxes

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...

July 23, 2020
Elaine MaagRobert McClellandC. Eugene Steuerle
Brief
Individual Taxes

Comparing the EITC and Child Tax Credit Proposals

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...

July 23, 2020
Elaine MaagRobert McClellandC. Eugene Steuerle
Research report
Individual Taxes

Shifting Child Tax Benefits in the TCJA Left Most Families About the Same

This report analyzes the main provisions of the federal income tax code that provide benefits to families with children, comparing current law with what would be happening had the TCJA not been enacted, and discusses the TCJA’s implications for families of different income levels. On net, almost...

August 16, 2019
Elaine Maag
Brief
Individual Taxes

What are the Largest Nonbusiness Tax Expenditures?

In this brief we consider the largest nonbusiness tax expenditures in the individual income tax. We provide a description of these provisions, estimates of their cost and the distribution of their tax benefits across income groups, and briefly summarize their effects. We consider tax...

July 17, 2019
Frank SammartinoEric Toder
Research report
Individual Taxes

Redesigning the EITC: Issues in Design, Eligibility, Delivery, and Administration

The earned income tax credit provides substantial assistance to low- and moderate-income workers. Benefits tilt heavily to families with children. Prompted in part by the success of the credit and in part by shortcomings in the credit, policymakers, advocates, and analysts have offered up reform...

June 10, 2019
Elaine MaagDonald MarronErin Huffer
Research report
Federal Budget and Economy

Distributional Effects of Individual Income Tax Expenditures After the 2017 Tax Cuts and Jobs Act

This paper provides estimates of the total cost of and distributional effects of nonbusiness tax expenditures claimed on individual tax returns after enactment of the 2017 Tax Cuts and Jobs Act, taking account of interactions among provisions. Nonbusiness tax expenditures will reduce tax...

June 5, 2019
Eric ToderDaniel Berger
Brief
Individual Taxes

Expanding the EITC for Workers without Resident Children

The federal earned income tax credit (EITC) is a refundable tax credit that provides substantial cash benefits to low-income working families with children. Working adults without children at home— including noncustodial parents, who are considered “childless” for tax purposes—also face economic...

May 30, 2019
Elaine MaagKevin WernerLaura Wheaton
Brief
Individual Taxes

Analysis of the Protecting Family and Small Business Tax Cuts Act of 2018

The Protecting Family and Small Business Tax Cuts Act of 2018 extends major individual income and estate tax provisions from 2017’s Tax Cuts and Jobs Act that are currently scheduled to expire at the end of 2025. The bill would reduce federal revenues by $631 billion within the budget window (...

September 12, 2018
Jeffrey RohalyJoseph RosenbergBenjamin R. PageDaniel Berger
Individual Taxes

Who Benefits from the Child Tax Credit Now?

The Tax Cuts and Jobs Act of 2018 doubled the maximum child tax credit from $1,000 to $2,000. But about 29 million children under age 17 with at least one working parent will miss out on the full increase because their families earn too little in income or owe too little in taxes.

This...

February 15, 2018
Elaine Maag
Research report
Individual Taxes

Impact of the Tax Cuts and Jobs Act on Families with Young Children

The Tax Cuts and Jobs Act (TCJA) would reduce tax revenue by nearly $1.5 trillion over the 10-year budget window from FY2018 to FY2027. Analysis by the Tax Policy Center shows that the tax cuts would tilt heavily toward the highest fifth of the income distribution, largely the result of cuts to...

November 28, 2017
Elaine MaagJulia B. Isaacs