Substantial Assistance
Despite the complexity of the system, child-related provisions substantially assist low- and middle-income families. Even families with moderate and relatively high incomes benefit from some child-related provisions.
Tax policies to help families with children abound, but each has different requirements and provisions to adjust tax burdens or provide direct subsidies. The complexity can be overwhelming for those trying to reap the benefits. This report details the pros, cons, intricacies and potential reforms of child-related tax provisions in the U.S. tax code and how each affects the earnings of low-, middle-, and high-income families.
Families must first understand which child qualifies for which benefits, and then must decipher the level of subsidy for which they qualify. This type of complexity confuses taxpayers and makes IRS enforcement more difficult.