28-Jan-10
http://www.taxpolicycenter.org
Preliminary Results REVISED
Table T10-0015
Child and Dependent Care Tax Credit: Extend EGTRRA Provisions and Allow Against AMT
Tax Benefit Compared to Current Law, 2011 1
Baseline: Current Law
Cash Income Class
(thousands of 2009
dollars)2,3
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units with a Benefit
Number Percent Of
(thousands)
Total
0
36
355
672
565
914
578
543
84
31
10
3,789
0.0
1.0
9.4
17.7
14.9
24.1
15.2
14.3
2.2
0.8
0.3
100.0
EGTRRA Extension and AMT Allowance
Tax Benefit
Amount ($ Percent Of
millions)
Total
0.0
11.1
127.6
256.2
225.5
362.7
220.8
208.9
33.7
16.5
5.6
1,468.7
0.0
0.8
8.7
17.4
15.4
24.7
15.0
14.2
2.3
1.1
0.4
100.0
Average
Benefit ($)
n/a
307
359
381
399
397
382
384
400
540
564
388
Tax Units with a Benefit
Tax Benefit
Number Percent Of
(thousands)
Total
Amount ($ Percent Of
millions)
Total
0
36
355
676
591
1,097
1,022
1,661
331
38
11
5,819
0.0
0.6
6.1
11.6
10.2
18.8
17.6
28.5
5.7
0.7
0.2
100.0
0.0
11.7
171.1
350.2
299.3
527.4
510.2
897.7
184.1
23.5
7.1
2,982.4
0.0
0.4
5.7
11.7
10.0
17.7
17.1
30.1
6.2
0.8
0.2
100.0
Average
Benefit ($)
n/a
325
481
518
506
481
499
540
556
618
654
513
Change in Tax Benefit Due to EGTRRA Extension and AMT Allowance
Tax Units with an
Average
Change in Tax Benefit
New
Increased Benefit 5
Increase in
Beneficiaries
Number
Percent of
Amount ($ Percent of Tax Benefit
(thousands)4
(thousands)
Total
millions)
Total
(Dollars)6
0
0
0
4
26
183
445
1,118
247
7
1
2,030
0
9
237
600
472
667
713
1,412
290
23
6
4,431
0.0
0.2
5.4
13.5
10.7
15.0
16.1
31.9
6.5
0.5
0.1
100.0
0.0
0.7
43.5
94.0
73.8
164.7
289.4
688.8
150.4
6.9
1.5
1,513.7
0.0
0.0
2.9
6.2
4.9
10.9
19.1
45.5
9.9
0.5
0.1
100.0
0
71
183
157
156
247
406
488
518
302
234
342
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. Proposal would: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children; increase the start of the credit rate phasedown to $15,000
of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Tax benefits are measured as the difference in individual income tax liability with and without the credit.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units. Tax units that are dependents of other taxpayers are excluded from the analysis.
(4) Number of tax units with no benefit from the credit under the baseline and a positive benefit under the proposal.
(5) Includes both new beneficiaries and those tax units with a positive benefit under the baseline but a higher benefit under the proposal.
(6) The average increase is calculated only for those who actually receive a change in tax benefits because of the proposal.