Research Report Analysis of a Young Child Tax Credit
Providing an Additional Tax Credit for Children Under 5
Elaine Maag, Julia B. Isaacs
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Families with young children tend to have lower incomes than other families. The current child tax credit provides substantial benefits to families with children, but the maximum benefit of $1,000 is the same for all children under 17, regardless of age. We analyze a proposal that would provide an additional credit of up to $1,000 per child under 5. An income boost during these critical developmental years could provide lifelong benefits. The credit would deliver about $18 billion in benefits in 2017 and would be refundable, starting with the first dollar of earnings, so that even very low–income families could benefit.
Research Areas Families Social safety net Taxes and budgets Children and youth
Tags Economic well-being Families with low incomes Refundable tax credits Individual taxes Kids in context Child Tax Credit
Policy Centers Urban-Brookings Tax Policy Center