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.

April 1, 2011

In This Report, You’ll Learn

  1. 1

    The history of child benefit policies in the U.S. tax code.

  2. 2

    The benefits, restrictions and fiscal impact of each child tax policy through 2011.

  3. 3

    Past changes to the tax code and how they currently affect families with children.

  4. 4

    The difference between tax burdens and direct subsidies.

  1. 5

    What changes have been proposed to simplify the tax codes involving children.

Key Takeaway

child tax benefits are complex and confusing

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.  

Findings & Stats

Statements & Quotations