Brief Child-Related Benefits in the Federal Income Tax
Elaine Maag
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The federal income tax system provides substantial benefits to families with children. In 2013, the Tax Policy Center estimates that five major child-related tax benefits the earned income tax credit (EITC), the child tax credit, the child and dependent care tax credit, the dependent exemption, and head of household filing status will reduce taxes and provide credits totaling $171 billion (roughly $3,400 per family) for families with children. Nearly all families benefit, but low- and middle-income families tend to benefit most. This paper highlights who benefits from each major provision and how much benefit is received.
Research Areas Economic mobility and inequality Families Social safety net Taxes and budgets Children and youth
Tags Low-Income Home Energy Assistance Program (LIHEAP) Economic well-being Individual taxes Income and wealth distribution Kids in context Families with low incomes
Policy Centers Urban-Brookings Tax Policy Center