Child Tax Credit

Home Introduction Why We Need Family Benefits The Major Problems Fixing Family Benefits Two Tiers of Welfare Marriage Penalties Marginal Tax Rates Asinine Asset Tests Administrative Burdens Over-Reliance on Tax Code

Programs

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The Child Tax Credit The Earned Income Tax
Credit The Head of Household
Filing Status The Child & Dependent
Care Credit SNAP (Food Stamps) Temporary Assistance for
Needy Families WIC Medicaid & CHIP

Bills

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Family Security Act Build Back Better Act Working Families Tax
Relief Act End Child Poverty Act SSI Restoration Act

I am a and I have .

I have an income of $20,000:

Your child tax credit is worth $1,600

Chart by @jaydavidmartin1
CC BY 4.0

Zoom on lower incomes: Hide outputs: Screenshot mode:

Highlights

The head of household filing status is a family benefit for single parents who pay for more than half of their household expenses. It provides a larger standard deduction and preferential tax rates.

Yes, poor families are excluded from benefits. The HOH filing status does not provide any benefit to single parents who make less than the single standard deduction ($12,950 in 2022). When considered in conjunction with the child tax credit, HOH provides no benefit to single parents with one child with an income below $18,950, to single parents with two children with an income below $24,662, and to single parents with three children with an income below $29,662 (see "How do tax credits affect HOH?"). Furthermore, benefits for working class people are substantially smaller than those for parents with higher incomes (see "Is HOH regressive?").

Yes. When a head of household marries a singler filer or another head of household, the amount of tax they owe as joint filers is generally going to be higher than the sum of their individual taxes when they were not married.

Highlights

The head of household filing status is a family benefit for single parents who pay for more than half of their household expenses. It provides a larger standard deduction and preferential tax rates.

	Single Filer	Head of Household	Married
One Child	$2,000	$1,600	$1,600
Two Children	$2,740	$2,325	$2,325
Three Children	$2,740	$2,325	$2,325
Four Children	$2,740	$2,325	$2,325

Notes

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^ Note 3

References

Bruenig, Matt (December 6, 2022). "What to Do With the Child Tax Credit Now?". People's Policy Project. Archived from the original on December 21, 2022.
Bruenig, Matt (January 17, 2021). "Monthly Child Tax Credit Would Be a Train Wreck". People's Policy Project. Archived from the original on December 19, 2022.
Bruenig, Matt (March 7, 2022). "The Child Tax Credit Cannot Be Administered". People's Policy Project. Archived from the original on November 5, 2022.
Crandall-Hollick, Margot L. (January 12, 2021). "The Child Tax Credit: How It Works and Who Receives It" . Congressional Research Service. Archived from the original on December 20, 2022.
Crandall-Hollick, Margot L. (May 12, 2021). "The Child Tax Credit: Temporary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2)" . Congressional Research Service. Archived from the original on October 2, 2022.
Crandall-Hollick, Margot L.; Boyle, Connor F.; Carter, Jameson A. (July 13, 2021). "The Child Tax Credit: The Impact of the American Rescue Plan Act (ARPA; P.L. 117-2) Expansion on Income and Poverty" . Congressional Research Service. Archived from the original on October 15, 2022.
Crandall-Hollick, Margot L.; Hughes, Joseph S. (December 23, 2021). "The Child Tax Credit: Legislative History" . Congressional Research Service. Archived from the original on August 20, 2022.
Crandall-Hollick, Margot L. (November 24, 2021). "The Impact of a 'Fully Refundable' Child Tax Credit" . Congressional Research Service. Archived from the original on December 9, 2022.
Crandall-Hollick, Margot L. (August 28, 2020). "The Child Tax Credit: Selected Legislative Proposals in the 116th Congress" . Congressional Research Service. Archived from the original on November 25, 2022.
Boyle, Connor F.; Crandall-Hollick, Margot L. (December 12, 2022). "How much did the temporary ARPA changes to the child credit reduce child poverty in 2021?" . Congressional Research Service.
Crandall-Hollick, Margot L.; Carter, Jameson A.; Falk, Gene (October 19, 2020). "The Impact of the Federal Income Tax Code on Poverty" . Congressional Research Service. Archived from the original on July 16, 2022.
Landers, Patrick A.; Crandall-Hollick, Margot L. (March 12, 2021). "Child Tax Benefits and Children with Complex or Dynamic Living Arrangements" . Congressional Research Service. Archived from the original on May 21, 2022.
Falk, Gene (September 27, 2021). "Need-Tested Benefits: Children and Poverty" . Congressional Research Service. Archived from the original on May 7, 2022.
Falk, Gene; Romero, Paul D.; Lynch, Karen E. (June 30, 2021). "Need-Tested Benefits: Who Receives Assistance?" . Congressional Research Service. Archived from the original on June 28, 2022.
Landers, Patrick A.; Falk, Gene; Lynch, Karen E.; Boyle, Conor F.; Tollestrup, Jessica (December 8, 2021). "Federal Spending on Benefits and Services for People with Low Income: FY2008-FY2020" . Congressional Research Service. Archived from the original on December 30, 2022.

The Child Tax Credit (2023)

What is the Child Tax Credit?

The CTC Reduces Child Poverty Substantially

The CTC Excludes Poor Families

The CTC Excludes Poor Families

The CTC Is Needlessly Complicated

The CTC Is Needlessly Complicated

Phase-Ins for Families with 1–4 Children by Filing Status

Tax Credits are Not as Effective as Direct Spending

Solution: A Universal Child Benefit

Analysis of Bills

Notes

References

Two Tiers of Welfare	Marriage Penalties
Marginal Tax Rates	Asinine Asset Tests
Administrative Burdens	Over-Reliance on Tax Code

Child Tax Credit	Earned Income Tax Credit
Head of Household	CDCC
SNAP (Food Stamps)	TANF
WIC	Medicaid & CHIP

Family Security Act	Build Back Better
Working Families Tax Relief Act	End Child Poverty Act
SSI Restoration Act