Prior to last year, more than one in three children lived in households with incomes too low to receive the full $2,000 credit because it is not fully refundable. This means earnings requirements and other limits reduce the amount tax filers can receive as a refund. In fact, the maximum refundable portion is reduced to $1,400 (less than half of the maximum refundable credit available in 2021).
ITEP's Research Priorities
- Blog
- Cannabis Taxes
- Corporate Taxes
- Corporate Taxes
- Earned Income Tax Credit
- Education Tax Breaks
- Estate Tax
- Federal Policy
- Fines and Fees
- Immigration
- Income Taxes
- Inequality and the Economy
- ITEP Work in Action
- Local Income Taxes
- Local Policy
- Local Property Taxes
- Local Refundable Tax Credits
- Local Sales Taxes
- Maps
- News Releases
- Personal Income Taxes
- Property Taxes
- Property Taxes
- Publications
- Refundable Tax Credits
- Sales, Gas and Excise Taxes
- Sales, Gas and Excise Taxes
- SALT Deduction
- Select Media Mentions
- Social Media
- Staff
- Staff Quotes
- State Corporate Taxes
- State Policy
- State Reports
- States
- Tax Analyses
- Tax Basics
- Tax Credits for Workers and Families
- Tax Credits for Workers and Families
- Tax Reform Options and Challenges
- Taxing Wealth and Income from Wealth
- Trump Tax Policies
- Who Pays?
-
blog January 13, 2022 The Problem with Returning to a $2,000 Non-Refundable Child Tax Credit
-
blog January 11, 2022 School’s In: Tackling College Affordability Through State Tax Codes
Given that a sweeping federal solution to the college affordability crisis does not appear to be on the immediate horizon, it is even more important that states take whatever steps they can to expand college access and affordability. While most of that effort will need to occur on the spending side of the ledger—such as through lowering tuition costs, expanding financial aid, or perhaps even funding free college outright—tax policy also has a role to play.
-
blog January 10, 2022 The New Trend: Short-Sighted Tax Cuts for the Rich Will Not Grow State Economies
The same legislators who touted tax cuts for the rich as solution to our problems before the pandemic are also saying tax cuts for the rich are a solution during the pandemic. Tax cuts cannot be a solution to everything, especially at a time when the richest Americans are amassing more wealth than ever.
-
blog January 10, 2022 Investing in a Joint Future: Harnessing State Tax Codes
Rather than resorting to tax cuts, which can eventually create revenue shortfalls, lawmakers should determine whether they have adequately invested in people and communities. There are better ways to leverage tax systems to help those who need it most.
-
blog December 21, 2021 Why Treasury’s Pending Race-Based Analysis of Stimulus Payments is Important
One important data inadequacy is the lack of demographic information in tax data. While the IRS data offers rich data on taxpayer income, it does not collect information on important demographic characteristics like race and ethnicity. This presents a challenge for researchers interested in the racialized impacts of the U.S. tax system and has prompted many researchers and organizations to advocate for public-use tax data that is disaggregated by race and ethnicity.
-
blog December 14, 2021 ITEP Data on Child Tax Credit and Earned Income Tax Credit Provisions Before Congress
Congress expanded the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) for 2021 as part of the American Rescue Plan Act (ARP). The additional benefits that millions of… -
brief December 12, 2021 Resources on the Build Back Better Agenda
President Biden’s American Families Plan (AFP) would use personal income tax increases on very well-off individuals to finance investments in people—in childcare, education, higher education, reducing child poverty, and other related measures. The following analyses provide more information about the revenue proposals in the AFP.
-
blog December 9, 2021 Tax Credits in Build Back Better Support Millions of Families
The EITC and CTC are proven poverty-fighting tools. The monthly CTC payments alone kept 3.6 million people out of poverty in October. This policy success is worth repeating.
-
ITEP Work in Action December 8, 2021 The Commonwealth Institute: Tax Proposals Would Reduce Resources for Education, Transportation, and Other Priorities
The incoming Youngkin administration and state lawmakers have proposed several major tax proposals to reduce taxes for individuals and businesses. These include one-time tax rebates, dramatically increasing the state standard… -
December 8, 2021 Alex Welch
Alex leads the organization’s graphic design work and content creation for email, social media and website. Prior to joining ITEP, Alex served as the Digital & Media Manager for the Georgia Budget and Policy Institute.
-
media mention November 24, 2021 CNN Business: This Tax Would Make Wealthy Corporations Pay Their Fair Share
Corporate America has perfected the art of dodging the taxes that everyone else pays. From 2018 to 2020, 39 of the largest companies in America paid zero dollars in federal… -
media mention November 19, 2021 Forbes: How An $80,000 SALT Cap Stacks Up Against A Full Deduction For Those Making $400,000 Or Less
Congress seems to be considering two ways to address the Tax Cut and Job Act’s $10,000 cap on the state and local tax (SALT) deduction. The House version of President… -
media mention November 19, 2021 The Washington Post: Who would pay more and less in taxes under the House bill
The millionaire’s surtax aims to raise taxes on wealthy Americans without touching rates. The alternative minimum tax for corporations aspires to accomplish a similar aim by raising money from profitable… -
news release November 19, 2021 House Passage of Build Back Better Bill Moves America’s Tax Code in the Right Direction
The Build Back Better plan that the House passed today will transform the country and make our tax code more progressive, more equitable and better able to pay for crucial priorities.
-
media mention November 18, 2021 LGBTQ Nation: Joe Biden’s Build Back Better Act will give tax refunds to some same-sex couples
In 2013, the Supreme Court ruled in United States v. Windsor that the federal government must recognize LGBTQ marriages in states that had legalized marriage equality. Per that ruling, the… -
media mention November 18, 2021 Common Dreams: Elizabeth Warren Releases Blueprint to End ‘Free Ride’ for Tax-Dodging US Billionaires
According to the report—which is based on data Warren’s staff compiled from the Institute on Taxation and Economic Policy—although Amazon paid $2.8 billion in federal and foreign income taxes in… -
blog November 18, 2021 Key Reform in Build Back Better Act Would Close Loophole Used by the Rich To Avoid Funding Healthcare
The proposal in the Democrats’ Build Back Better proposal applies the 3.8 percent Net Investment Income Tax to all profit distributions from partnerships and S-corporations so that this income of wealthy pass-through business owners no longer escapes.
-
blog November 18, 2021 Tax Credit Reforms in Build Back Better Would Benefit a Diverse Group of Families
The CTC and EITC provisions would have a particularly profound effect on the poorest 20 percent of Americans, who all will have incomes of less than $22,000 in 2022. Taken together, the EITC and CTC changes would lift the average income of these households by more than 10 percent.
-
report November 18, 2021 Analysis of the House of Representatives’ Build Back Better Legislation
If the bill becomes law, in 2022 federal taxes would go up for the average taxpayer among the richest one percent and down for the average taxpayer in other income groups.
-
blog November 18, 2021 Report Illustrates How 70 Corporations Could Be Affected by Minimum Tax Proposal in the Build Back Better Act
Amazon, Bank of America, Facebook, FedEx, General Motors, Google, Netflix, PayPal, T-Mobile and Verizon are just a few of the 70 corporations that would have paid more taxes under the Democrats’ proposed Corporate Profits Minimum Tax (CPMT) if it had been in effect in 2020 according to a new report from Sen. Elizabeth Warren’s office with estimates verified by the Institute on Taxation and Economic Policy.
-
news release November 15, 2021 ITEP Statement on President Biden Signing the Infrastructure Investment and Jobs Act
America does better when we invest in our people, our places and our planet. The infrastructure bill that President Biden signed today will restore and strengthen our physical infrastructure, making repairs and improvements that are long overdue. Now Congress needs to take the next step and pass legislation that taxes wealthy people and corporations to pay for our care and climate infrastructure.
-
media mention November 15, 2021 Newsweek: Families Could Get $1,800 per Child Tax Credit, but Must Register Now
The child tax credit was expanded under President Joe Biden’s American Rescue Plan in March in a bid to reduce child poverty. The Institute on Taxation and Economic Policy estimated… -
media mention November 12, 2021 Salon: Meet Tom Suozzi, the Democrat who wants tax cuts for the rich jammed into Build Back Better
Suozzi has for months pushed a total repeal of the cap, which would cost taxpayers about $85 billion per year, according to the nonpartisan Committee for a Responsible Federal Budget… -
media mention November 10, 2021 The Hill: Democrats at odds over SALT changes
The left-leaning Institute on Taxation and Economic Policy released an analysis finding that the House proposal would provide more of its benefits to households in the top 1 percent of… -
blog November 4, 2021 Democrats Seek to Eliminate the Stock Buyback Advantage
An important reform in the bill before Congress would tax stock buybacks in a way that is more comparable to how dividends are taxed. Corporations would be required to pay a tax equal to 1 percent of their stock repurchases, ensuring that profits shifted to shareholders in this way are subject to some federal tax.