Individual Tax Expenditures, Credits, and Deductions

After-Tax Income

Adjusted Gross Income (AGI)

Tax Credit

Taxable Income

Debunking 3 Myths About the Mortgage Interest Deduction

Phase 4 Is not the Time to Experiment with Temporary Credits

As lawmakers consider returning to the tax code as a tool to revive a struggling economy with high unemployment and an unpredictable virus, they should avoid temporary changes that can be distortive in the short term and inefficient in the long term.

Three Reasons Expanding Credits Aren’t the Best Pandemic Response for the Vulnerable

While reforming certain tax credits may make sense, there are far better ways to provide individuals and families with more liquidity during this crisis.

When Marriage Doesn’t Pay: Analysis and Options for Addressing Marriage and Second-Earner Penalties

In many cases, when two single workers combine their incomes and file jointly, the progressive tax system penalizes the secondary earner by subjecting their wages to a higher marginal tax rate.

Latest Data Shows That the Tax Cuts and Jobs Act Did Not Dampen Charitable Giving

Tax Relief for Families in Europe

Most countries provide tax relief to families with children—typically through targeted tax breaks that lower income taxes. While all European OECD countries provide tax relief for families, its extent varies substantially across countries.

HEROES Act Dependent Expansions Come with Major Drawbacks

The HEROES Act adds to the confusion and instability already inherent in the tax code with multiple expiring provisions and reduced filing guidelines.

HEROES Act Temporarily Increases Dependent Credit Generosity

The HEROES Act would make notable expansions to all three dependent-related credits, increasing maximum credit amounts, refundability, and income eligibility phaseouts. Practically, this means that certain filers could expect to receive a larger refund for each additional hour of work, eligible dependent, and dependent care expenses if the bill became law.

HEROES Act First Bid to Provide Phase 4 Relief for Businesses and Individuals

The HEROES Act, the $3 trillion relief package proposed by House Democrats, is the first bid to provide additional phase 4 aid for businesses and individuals amid the coronavirus pandemic.

Treasury Audit Highlights the Need for Clearer Eligibility Guidelines for the EITC

The Child Tax Credit: Primer

The Child Tax Credit (CTC) is a partially-refundable tax credit available to parents with qualifying dependents under the age of 17. Like other tax credits, the CTC reduces tax liability dollar-for-dollar of the value of the credit.

Tracking State Legislative Responses to COVID-19

Many states are racing to pass budgets, emergency COVID-19 supplemental appropriations, and other must-pass legislation as quickly as possible. We’re tracking the latest state legislative responses to the coronavirus crisis.

Weighing the Value of Tax Credits During an Economic Crisis

One idea under consideration is adjusting existing tax credits, such as the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC), to provide financial relief during the crisis.

Tracking Economic Relief Plans Around the World during the Coronavirus Outbreak

Countries around the world are implementing emergency tax measures to support their economies under the coronavirus (COVID-19) threat.

Overview of Previous Tax Rebates During Economic Downturns

The timing from enactment to distribution has varied from about one and a half months to more than two months, indicating that it has historically taken a significant amount of time for individual taxpayers to receive their rebates after the policies have been put in place.

How the Federal Government and the States Could Help Save Small Businesses Through Temporary UI Tax Adjustments

Governmental responses to the coronavirus outbreak will require creativity and flexibility—and one aspect of that may involve temporarily rethinking how we structure not only unemployment insurance (UI) benefits but also the taxes that pay for them.