Arbeitspapier
How would a permanently Refundable Child and Dependent Care Credit affect eligibility, benefits, and incentives?
The federal Child and Dependent Care Credit (CDCC) subsidizes child care costs for working families. Before 2021, the CDCC was nonrefundable, so only families with positive tax liability after other deductions benefited. I estimate how CDCC eligibility, benefits, and marginal tax rates would change if the credit were made permanently refundable, relative to 2020 CDCC parameters set to be restored in 2022. Under refundability, some 5 percent of single parents gain eligibility and receive on average over $1,000 annually. Eligibility increases are largest among Black and Hispanic households. Increases in marginal tax rates among moderate-income taxpayers are small.
- Language
-
Englisch
- Bibliographic citation
-
Series: Upjohn Institute Working Paper ; No. 21-344
- Classification
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fertility; Family Planning; Child Care; Children; Youth
Time Allocation and Labor Supply
- Subject
-
Child and Dependent Care Credit
marginal tax rates
eligibility
refundability
- Event
-
Geistige Schöpfung
- (who)
-
Pepin, Gabrielle
- Event
-
Veröffentlichung
- (who)
-
W.E. Upjohn Institute for Employment Research
- (where)
-
Kalamazoo, MI
- (when)
-
2021
- DOI
-
doi:10.17848/wp21-344
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pepin, Gabrielle
- W.E. Upjohn Institute for Employment Research
Time of origin
- 2021
Other Objects (12)
Farm savings accounts: Examining income variability, eligibility, and benefits
Who Benefits from Tax Incentives? The Heterogeneous Wage Incidence of a Tax Credit
Designing Disability Insurance Reforms: Tightening Eligibility Rules or Reducing Benefits?
Who benefits from benefits? Empirical research on tangible incentives
Who Benefits from Benefits? Empirical Research on Tangible Incentives
Dynamic Incentives in Retirement Earnings-Replacement Benefits
Unemployment Benefits, Risk Aversion, and Migration Incentives
Incentives in the Welfare State: Lessons for would-be welfare states
The Child Tax Credit over Time by Family Type: Benefit Eligibility and Poverty
Unemployment Benefits and Household Credit Risk
Eligibility recertification and dynamic opt-in incentives in income-tested social programs: Evidence from Medicaid/CHIP
Work incentives adjusting for childcare subsidies and healthcare benefits
Farm savings accounts: Examining income variability, eligibility, and benefits
Who Benefits from Tax Incentives? The Heterogeneous Wage Incidence of a Tax Credit
Designing Disability Insurance Reforms: Tightening Eligibility Rules or Reducing Benefits?
Who benefits from benefits? Empirical research on tangible incentives
Who Benefits from Benefits? Empirical Research on Tangible Incentives
Dynamic Incentives in Retirement Earnings-Replacement Benefits
Unemployment Benefits, Risk Aversion, and Migration Incentives
Incentives in the Welfare State: Lessons for would-be welfare states
The Child Tax Credit over Time by Family Type: Benefit Eligibility and Poverty
Unemployment Benefits and Household Credit Risk
Eligibility recertification and dynamic opt-in incentives in income-tested social programs: Evidence from Medicaid/CHIP
Work incentives adjusting for childcare subsidies and healthcare benefits
Farm savings accounts: Examining income variability, eligibility, and benefits
Who Benefits from Tax Incentives? The Heterogeneous Wage Incidence of a Tax Credit
Designing Disability Insurance Reforms: Tightening Eligibility Rules or Reducing Benefits?
Who benefits from benefits? Empirical research on tangible incentives
Who Benefits from Benefits? Empirical Research on Tangible Incentives
Dynamic Incentives in Retirement Earnings-Replacement Benefits
Unemployment Benefits, Risk Aversion, and Migration Incentives
Incentives in the Welfare State: Lessons for would-be welfare states
The Child Tax Credit over Time by Family Type: Benefit Eligibility and Poverty
Unemployment Benefits and Household Credit Risk
Eligibility recertification and dynamic opt-in incentives in income-tested social programs: Evidence from Medicaid/CHIP