How does the tax system subsidize child care expenses? Q.How does the tax system subsidize child care expenses? A.Working parents are eligible for two tax benefits to offset child care costs: the child and dependent care tax credit and the exclusion for employer-provided child care. The credit benefits only a small share of parents because relatively few have formal child care expenses that qualify for the credit. Read more about How does the tax system subsidize child care expenses?
How do state child tax credits work? Q.How do state child tax credits work? A.A state child tax credit (CTC), like the federal version, is a tax credit for households with eligible children. However, both the amount of the credit and the eligibility rules for households vary considerably across states. Read more about How do state child tax credits work?
Can poor families benefit from the child tax credit? Q.Can poor families benefit from the child tax credit? A.Yes. Low-income families can receive a refundable child tax credit equal to 15 percent of earnings above $2,500, up to a maximum credit of $1,600. Read more about Can poor families benefit from the child tax credit?