Benefits to Families and Individuals from the

Major Family and Education Tax Provisions under Current Law1

for Taxable Year 2022

Office of Tax Analysis

August 18, 2021

Deena Ackerman

Michael Cooper

1 A companion document describing the benefits to families for taxable year 2022 under the Administration’s 

Budget proposals for fiscal year 2022 instead of under current law is also available on the Treasury website.
The federal income tax system supports families by reducing their tax liabilities, and thus 

increasing their after-tax incomes, in several different ways. Principally, this support takes the 

form of certain deductions and credits available only to taxpayers with children or other 

dependents. This document presents a series of tables that describe the income tax benefits to

families and individuals from key provisions under current law for taxable year 2022 as a

function of adjusted gross income (AGI). A substantial expansion for taxable year 2021of some 

of the provisions was enacted as part of the American Rescue Plan Act of 2021 (Public Law 117-

2). Under current law, the provisions will largely revert back to prior year rules for taxable year

2022.2

The provisions examined are head of household filing status (HoH); the earned income tax credit 

(EITC); the child tax credit, the additional child tax credit, and the other dependent tax credit

(CTC, ACTC and ODTC respectively); the child and dependent care tax credit (CDCTC); the

American opportunity tax credit (AOTC); and the lifetime learning tax credit (LLTC). The EITC

and the education credits are available to families and individuals. The tables show the number 

of tax units3

expected to benefit from or claim these benefits using Treasury’s Individual Tax 

Model (ITM). The ITM takes a stratified random sample of tax returns from a base year,

forecasts the values of line items on the tax returns for 2022, and applies a very detailed tax

calculator to analyze how changes in the tax system affect tax liability. 

Summary Table A answers the questions for the key family and education tax benefits under 

current law: “How many tax units benefit from the provision(s), what is the total amount of 

benefit and what is the average benefit per return?” The benefits are explored individually and in 

combination. Summary Table B answers the questions for the key family and education tax 

benefits under current law: “How many tax units claim the provision(s) and what is the total 

amount claimed and average amount claimed per return?” 

For any given provision shown in Summary Table A, the amount of benefit is calculated by 

comparing estimated tax liability to what estimated tax liability would be in the absence of the

provision (but with the law and proposed law otherwise unchanged). In some cases, the number

of tax units benefiting (or the amount of benefit received) is smaller than the number of tax units 

claiming (or the amount claimed). This difference occurs in cases where some would have 

chosen an alternate credit if the one under consideration were repealed. For example, in absence 

of the CTC, nearly all current claimants would switch to the ODTC. At most, these taxpayers 

would see their taxes increase by $1,500 and not the full $2,000 per child. The number of credits 

claimed and the amount claimed are shown in Summary Table B. The amounts in Summary 

Table B also differ from the amounts shown in Summary Table A because the estimates in

Summary Table A ignore changes in tax of less than $5. 

The remaining tables present greater detail for each of the lines of Summary Table A. An

appendix provides a brief summary of the provisions under current law for taxable year 2022. 

2 Readers are referred to the General Explanation of the Administration’s Budget Proposals for FY 2022 

(Greenbook) for complete descriptions of current law for taxable year 2022: 

https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf. 3 A tax unit consists of the individuals on a given tax return. In some cases, membership will be identical to the 

household or family, but in other cases (e.g. a multigenerational household) membership will differ.
Current Law 

2 

Summary Table A

Tax Support for Families from Main Family-Related Tax Provisions 

Under Current Law

Taxable Year 2022

Counts and Amounts of Tax Units Benefitting from ...1

Total Total Average

Tax Units2 Value Benefit

(millions) ($billions) ($)

1 Head of Household Filing Status 15.3 18.4 1,203

2

Child Credit (CTC) and Additional Child Tax Credit 

(ACTC) 48.6 119.8 2,463

and Other Dependent Credit (ODC)

2A Child Tax Credit and Additional Child Tax Credit 38.4 86.7 2,258

2B Additional Child Tax Credit (ACTC) 20.2 35.8 1,770

(make ACTC nonrefundable)

2C Other Dependent Credit 15.7 10.1 644

3 Earned Income Tax Credit (EITC) 26.4 67.1 2,544

3A EITC Marriage Penalty Relief3 4.3 3.9 895

3B EITC Students and Disabled 3.1 6.5 2,091

(repeal EITC for qualifying children >18)

3C EITC for Families with Children 19.4 64.9 3,351

3D EITC for Families with No Children 7.0 2.3 323

4 Child and Dependent Care Tax Credit 6.0 3.4 566

5 Education Credits (AOTC and LLTC) 12.9 17.5 1,350

5A Lifetime Learning Credit (LLTC) 4.2 3.1 742

5B American Opportunity Tax Credit (AOTC) 8.9 9.3 1,040

5C Refundability of AOTC4 5.0 4.1 835

(make AOTC nonrefundable)

6 Any Major Family and Education Credit5 63.8 208.8 3,274

Office of Tax Analysis August 5, 2021

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

3 

1 The tax benefits included in this table are the head of household filing status, the earned income tax credit 

(EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the child and dependent care tax credit 

(CDCTC), the American opportunity tax credit (AOTC), the lifetime learning tax credit (LLTC) and the other 

dependent tax credit (ODTC).

2 Dependent returns are excluded from the calculations. Returns are considered to benefit from a provision (or set 

of provisions) if income tax liability increases by $5 or more if the provision is (or provisions are) repealed.

3 In 2022, the phaseout range of the EITC for joint filers begins at incomes $6,050 higher than for other filers.

4 Even though all 8.9 million tax units claiming an AOTC claim the 40 percent of the credit that is refundable, only 

those with insufficient tax liability to offset their full credit benefit from this refundability. Tax units with sufficient tax 

liability would receive their full credit even without refundability; they are therefore not included among the 5.0

million units benefiting from refundability.

5. The credits included in line 6 are the seven credits described in footnote 1.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

4 

Summary Table B

Number of Tax Units Claiming and Amounts Claimed for Key Family Credits1

Under Current Law

Taxable Year 2022

Tax Credit 

Number of 

Tax Units

Amount 

Claimed

Average 

Claimed

(numbers correspond to Tables 2-6) (Millions) ($Billions) ($)

2. Total CTC, ACTC and ODTC 48.9 120.1 2,457

2A. Total CTC + ACTC 38.4 109.2 2,841

- CTC 29.4 73.6 2,500

2B. ACTC 20.3 35.6 1,759

2C. ODTC 16.9 10.9 643

3. Total EITC 26.4 67.1 2,540

3C. EITC for workers with children 19.4 2.3 117

3D. EITC for workers without children 7.1 64.9 9,172

4. Total CDCTC 6.6 3.9 585

5. Total Education Credits 13.2 18.0 1,365

5A. LLTC 4.5 3.3 734

5B. Total AOTC2 9.0 14.7 1,640

- AOTC nonrefundable portion 6.5 7.1 1,082

5C. AOTC refundable portion3 9.0 7.6 851

6. Total EITC, CTC, ACTC & ODTC, CDCTC, & Educ. 63.7 205.2 3,223

Credits

Office of Tax Analysis August 3, 2021

1The tax benefits included in this table are the earned income tax credit (EITC), the child tax credit (CTC), the additional 

child tax credit (ACTC), the other dependent tax credit (ODTC), the child and dependent care tax credit (CDCTC), the 

American opportunity tax credit (ACTC) and the lifetime learning tax credit (LLTC). Head of Household filing status is not 

included. The line numbers correspond as closely as possible to Tables 2-6. Lines that are not numbered (but begin with 

a dash) do not correspond to an earlier table. 

2 The Omnibus Appropriations and Covid-19 Relief Act passed in December of 2020 expanded the phaseout of the LLTC 

to the higher AOTC levels.

3As written in the statute, the AOTC is calculated in two pieces: 40 percent of the otherwise allowable AOTC is 

refundable and the remaining 60 percent is not refundable. Thus, all tax units claiming an AOTC receive the refundable 

portion of the AOTC but only those with tax liability to offset are able to claim all or part of the nonrefundable portion of 

the AOTC. Of the 9 million tax units claiming an AOTC, 5.0 million would receive a smaller credit, or none at all, if the 

AOTC were not refundable.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

5 

Table 1

Estimated Benefit from

Head of Household Filing Status

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 23 2 100

15,001 - 30,000 2,610 1,141 437

30,001 - 40,000 3,259 2,474 759

40,001 - 50,000 2,501 2,028 811

50,001 - 60,000 1,873 1,746 932

60,001 - 75,000 1,810 3,379 1,867

75,001 - 100,000 1,550 3,918 2,528

100,001 - 200,000 1,369 3,092 2,258

200,001 - 500,000 229 483 2,115

500,001 - 1,000,000 42 91 2,142

1,000,001 - 5,000,000 14 29 2,024

over 5,000,000 2 3 1,932

Total1 15,284 18,386 1,203

Office of Tax Analysis June 25, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

6 

Table 2

Estimated Benefit from

Child Tax Credit (CTC), Additional Child Tax Credit (ACTC) 

and Other Dependent Tax Credit (ODTC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 4,488 5,103 1,137

15,001 - 30,000 8,710 16,861 1,936

30,001 - 40,000 5,255 12,869 2,449

40,001 - 50,000 4,093 11,051 2,700

50,001 - 60,000 3,467 9,607 2,771

60,001 - 75,000 4,072 11,190 2,748

75,001 - 100,000 5,063 14,406 2,845

100,001 - 200,000 9,669 27,951 2,891

200,001 - 500,000 3,709 10,545 2,843

500,001 - 1,000,000 13 17 1,345

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 48,641 119,808 2,463

Office of Tax Analysis August 2, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

7 

Table 2A

Estimated Benefit from

Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 4,452 5,079 1,141

15,001 - 30,000 7,474 14,693 1,966

30,001 - 40,000 3,987 9,123 2,288

40,001 - 50,000 3,069 7,514 2,448

50,001 - 60,000 2,576 6,443 2,501

60,001 - 75,000 2,977 7,553 2,537

75,001 - 100,000 3,747 9,744 2,600

100,001 - 200,000 7,189 19,011 2,644

200,001 - 500,000 2,812 7,300 2,597

500,001 - 1,000,000 13 17 1,345

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 38,397 86,684 2,258

Office of Tax Analysis August 2, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

8 

Table 2B

Estimated Benefit from

Refundability of Additional Child Tax Credit (ACTC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 4,451 5,077 1,140

15,001 - 30,000 7,468 14,366 1,924

30,001 - 40,000 3,715 7,210 1,941

40,001 - 50,000 2,022 4,226 2,090

50,001 - 60,000 1,215 2,416 1,989

60,001 - 75,000 802 1,474 1,838

75,001 - 100,000 359 597 1,662

100,001 - 200,000 89 224 2,502

200,001 - 500,000 2 6 2,840

500,001 - 1,000,000 0 0 1,132

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 20,226 35,800 1,770

Office of Tax Analysis August 2, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

9 

Table 2C

Estimated Benefit from

Other Dependent Tax Credit (ODTC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 35 5 137

15,001 - 30,000 1,399 605 433

30,001 - 40,000 1,838 1,168 635

40,001 - 50,000 1,615 1,096 678

50,001 - 60,000 1,445 1,029 712

60,001 - 75,000 1,724 1,153 669

75,001 - 100,000 2,111 1,426 676

100,001 - 200,000 4,025 2,617 650

200,001 - 500,000 1,493 1,007 674

500,001 - 1,000,000 2 1 502

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 15,688 10,108 644

Office of Tax Analysis August 2, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

10 

Table 3

Estimated Benefit from

Earned Income Tax Credit (EITC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 11,197 19,136 1,709

15,001 - 30,000 8,522 35,249 4,136

30,001 - 40,000 4,015 9,674 2,409

40,001 - 50,000 2,053 2,593 1,263

50,001 - 60,000 412 272 660

60,001 - 75,000 0 0 0

75,001 - 100,000 0 0 0

100,001 - 200,000 0 0 0

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 26,391 67,138 2,544

Office of Tax Analysis August 3, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

11 

Table 3A

Estimated Benefit from

Earned Income Tax Credit (EITC)

Marriage Penalty Relief1

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 185 71 383

15,001 - 30,000 1,687 1,325 785

30,001 - 40,000 1,129 1,291 1,143

40,001 - 50,000 958 961 1,003

50,001 - 60,000 306 178 581

60,001 - 75,000 0 0 0

75,001 - 100,000 0 0 0

100,001 - 200,000 0 0 0

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total2 4,309 3,857 895

Office of Tax Analysis August 3, 2021

1 In 2022, the phaseout range of the EITC for joint filers begins at incomes $6,050 higher than 

for other filers. 2 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

12 

Table 3B

Estimated Benefit from

EITC for Students and Disabled Adults

(EITC Qualifying Children Aged 19 to 23 and the Disabled Aged 19 and Up)1

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 660 1,537 2,329

15,001 - 30,000 1,239 3,418 2,758

30,001 - 40,000 735 1,144 1,555

40,001 - 50,000 386 309 802

50,001 - 60,000 60 33 542

60,001 - 75,000 0 0 0

75,001 - 100,000 0 0 0

100,001 - 200,000 0 0 0

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total2 3,099 6,481 2,091

Office of Tax Analysis August 3, 2021

1 In general, a qualifying child must be under 19 years of age. Exceptions are in place for fulltime students and the disabled. The age limit is extended to under 24 for full-time students. A 

full-time student is an individual who during each of five calendar months during the year was a 

full-time student at an educational organization broadly defined, or certain farm-related 

programs. The category “educational organizations” includes many types of schooling beyond 

traditional college. Full-time is defined by the educational organization. (In general, it 

corresponds to at least twelve credits hours or the equivalent.) Children who are permanently 

and totally disabled face no age limitation for the EITC. 

2 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

13 

Table 3C

Estimated Benefit from

Earned Income Tax Credit (EITC) – Tax Units with Children

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 4,991 16,997 3,406

15,001 - 30,000 7,823 35,149 4,493

30,001 - 40,000 4,015 9,674 2,409

40,001 - 50,000 2,053 2,593 1,263

50,001 - 60,000 412 272 660

60,001 - 75,000 0 0 0

75,001 - 100,000 0 0 0

100,001 - 200,000 0 0 0

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 19,355 64,866 3,351

Office of Tax Analysis August 3, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

14 

Table 3D

Estimated Benefit from

Earned Income Tax Credit (EITC) – Tax Units with No Children

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 6,206 2,138 345

15,001 - 30,000 699 99 142

30,001 - 40,000 0 0 0

40,001 - 50,000 0 0 0

50,001 - 60,000 0 0 0

60,001 - 75,000 0 0 0

75,001 - 100,000 0 0 0

100,001 - 200,000 0 0 0

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total1 7,037 2,273 323

Office of Tax Analysis August 3, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

15 

Table 4

Estimated Benefit from

Child and Dependent Care Tax Credit (CDCTC)

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 0 0 2,100

15,001 - 30,000 158 49 308

30,001 - 40,000 484 233 482

40,001 - 50,000 510 277 543

50,001 - 60,000 471 279 592

60,001 - 75,000 535 320 597

75,001 - 100,000 788 462 587

100,001 - 200,000 2,017 1,180 585

200,001 - 500,000 892 508 570

500,001 - 1,000,000 134 78 581

1,000,001 - 5,000,000 34 22 647

over 5,000,000 2 1 695

Total1 6,025 3,409 566

Office of Tax Analysis July 13, 2021

1 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

16 

Table 5

Estimated Benefit from

American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLTC)1

Taxable Year 2022

Adjusted Tax Units2 Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 2,168 1,785 824

15,001 - 30,000 2,621 2,864 1,093

30,001 - 40,000 1,367 1,787 1,307

40,001 - 50,000 1,055 1,536 1,457

50,001 - 60,000 803 1,194 1,486

60,001 - 75,000 1,032 1,597 1,547

75,001 - 100,000 1,264 2,034 1,609

100,001 - 200,000 2,570 4,609 1,793

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total3 12,939 17,465 1,350

Office of Tax Analysis August 3, 2021

1 The Omnibus Appropriations and Covid-19 Relief Act passed in December 2020 expanded the 

phaseout of the LLTC to the higher AOTC levels.

2 The filing status of 45 percent of all returns with an education credit was single.

3 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

17 

Table 5A

Estimated Benefit from

LLTC (with New Expanded Phaseout Range)1

Taxable Year 2022

Adjusted Tax Units2 Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 98 12 119

15,001 - 30,000 675 364 539

30,001 - 40,000 498 349 700

40,001 - 50,000 424 344 813

50,001 - 60,000 379 328 865

60,001 - 75,000 518 450 870

75,001 - 100,000 595 448 753

100,001 - 200,000 1,052 852 810

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total3 4,239 3,146 742

Office of Tax Analysis August 3, 2021

1 The Omnibus Appropriations and Covid-19 Relief Act passed in December of 2020 expanded 

the phaseout of the LLTC to the higher AOTC levels.

2The filing status of 45 percent of all returns with an education credit was single.

3 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

18 

Table 5B

Estimated Benefit from

American Opportunity Tax Credit (AOTC)1

Taxable Year 2022

Adjusted Tax Units2 Total Average

Gross Income Benefiting Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 2,069 1,751 846

15,001 - 30,000 1,946 1,830 940

30,001 - 40,000 870 900 1,034

40,001 - 50,000 641 736 1,148

50,001 - 60,000 435 520 1,197

60,001 - 75,000 539 646 1,199

75,001 - 100,000 719 893 1,243

100,001 - 200,000 1,663 1,964 1,181

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total3 8,940 9,298 1,040

Office of Tax Analysis August 3, 2021

1 The Omnibus Appropriations and Covid-19 Relief Act passed in December expanded the 

phaseout of the LLTC to the higher AOTC levels.

2 The filing status of 45 percent of all returns with an education credit was single.

3 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

19 

Table 5C

Estimated Benefit from

Refundability of the American Opportunity Tax Credit (AOTC)1

Taxable Year 2022

Adjusted Tax Units2 Total Average

Gross Income Benefitting3 Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 2,065 1,749 847

15,001 - 30,000 1,769 1,504 851

30,001 - 40,000 544 388 713

40,001 - 50,000 288 237 824

50,001 - 60,000 121 96 791

60,001 - 75,000 76 66 869

75,001 - 100,000 30 33 1,112

100,001 - 200,000 15 13 914

200,001 - 500,000 0 0 0

500,001 - 1,000,000 0 0 0

1,000,001 - 5,000,000 0 0 0

over 5,000,000 0 0 0

Total4 4,965 4,144 835

Office of Tax Analysis August 3, 2021

1 The Omnibus Appropriations and Covid-19 Relief Act passed in December expanded the 

phaseout of the LLTC to the higher AOTC levels.

2 The filing status of 45 percent of all returns with an education credit was single.

3 Even though all 8.9 million tax units claiming an AOTC claim the 40 percent of the credit that is 

refundable, only those with insufficient tax liability to offset their full credit benefit from this 

refundability. Tax units that have sufficient tax liability would receive their full credit even without 

refundability and are therefore not included among the 4.7 million benefiting from refundability.

4 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

20 

Table 6

Estimated Benefit from 

Seven Main Tax Credits for Families with Child and Education Expenses1

Taxable Year 2022

Adjusted Tax Units Total Average

Gross Income Benefiting2 Benefit Benefit

($) (Thousands) ($Millions) ($)

0 - 15,000 12,749 26,036 2,042

15,001 - 30,000 11,767 55,375 4,706

30,001 - 40,000 6,254 24,947 3,989

40,001 - 50,000 4,791 15,638 3,264

50,001 - 60,000 3,909 11,401 2,917

60,001 - 75,000 4,554 13,125 2,882

75,001 - 100,000 5,423 16,911 3,118

100,001 - 200,000 10,103 33,745 3,340

200,001 - 500,000 3,749 11,054 2,948

500,001 - 1,000,000 144 95 662

1,000,001 - 5,000,000 34 22 647

over 5,000,000 2 1 695

Total2 63,780 208,832 3,274

Office of Tax Analysis August 4, 2021

1 The seven credits are: child tax credit (CTC), additional child tax credit (ACTC), tax credit for 

other dependents (ODTC), earned income tax credit (EITC), child and dependent care tax credit 

(CDCTC), American opportunity tax credit (AOTC), and lifetime learning tax credit (LLTC).

2 Returns with negative income are excluded from the lowest income class but included in the 

total line. Dependent returns are excluded from the calculations. Returns with a tax change of at 

least $5 are included in the calculations.

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

21 

Appendix

Brief Description of the Main Tax Provisions for Families for Taxable Year 2022 under 

Current Law

Taxpayers with dependent children pay lower taxes than similar families without children 

through the following major tax provisions of the individual income tax. These provisions are 

described below. A more complete description of the provisions under current law (and as 

proposed for 2022) is available in the General Explanations of the Administration’s Fiscal Year 

2022 Revenue Proposals (the Greenbook).4

• Filing status – Unmarried taxpayers who are supporting a dependent child may be eligible to 

file as a head of household, instead of as a single filer. Head of household status has a higher 

standard deduction, and income is taxed under a separate rate bracket structure that is more 

generous than the brackets available to single filers. 

• Child credit (CTC) – Taxpayers may be eligible for a partially refundable child credit of 

$2,000 for each child through age 16 with a valid social security number. Taxpayers with 

insufficient tax liability to claim the entire CTC may be able to claim up to $1,400 per child 

of unclaimed credit as an additional child credit (ACTC). The ACTC is calculated as the 

lesser of any unclaimed credit and fifteen percent of any earnings in excess of $2,500, up to 

$1,400 per child. The CTC (combined with the amount of other dependent credit [see 

below]) phases out beginning at $200,000 of modified adjusted gross income (AGI) and 

$400,000 for married couples filing a joint return.

5

• Other dependent credit (ODTC) – Taxpayers may be eligible for a non-refundable other 

dependent credit of up to $500 for each qualifying dependent relative or child who is not 

eligible for the child credit. The ODTC (combined with the amount of CTC [see above]) 

phases out beginning at $200,000 of modified AGI ($400,000 for married couples filing a 

joint return).

• Earned income tax credit (EITC) – Taxpayers with earned income may be eligible for a 

refundable EITC. The amount of EITC a taxpayer may receive initially increases as the 

taxpayer earns more income, then remains constant over a range of earned income, and then 

decreases as earned income (or modified adjusted gross income, if greater) increases further. 

The credit begins to phase out at a higher income level for married taxpayers and is more 

generous for families with more children (up to three children).

o Taking as an example the one-child schedule for a single parent with estimated 

parameters for 2022, the credit phases in with earnings at a rate of 34 percent, until 

the maximum credit of $3,679 at $10,820. The credit begins phasing out with 

modified AGI (or earnings if greater) in excess of $19,840 at a rate of 15.98 percent, 

phasing out completely at $42,861.6

 

4 The Greenbook is available here: https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf 5 Up to 50 percent of the credit may be received in advance during the 2021; the first monthly payments based on 

predicted eligibility were disbursed in July. The Administration has proposes extending the advance for additional 

years but it is not extended under current law and not considered here. 6 Parameters shown are Treasury estimates for taxable year 2022. The end of the phase-in range and the end of the 

plateau are indexed for inflation. 

U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021 
Current Law 

22 

o Under current law for taxpayers with no qualifying children (including those living 

with children they do not claim), for taxable year 2022 the phase-in and phaseout rate 

is 7.65 percent, and the maximum credit is $552. The credit is fully phased in at 

earnings of $9,980 and begins phasing out at the greater of earnings or modified AGI 

at $11,800. 

o The EITC for married taxpayers who file a joint return will begin to phase out at 

incomes $6,050 higher than for other filers. 

• Child and dependent care credit (CDCTC) – Taxpayers with expenses for caring for a 

qualifying individual, who may be a child or an adult, may be eligible for a non-refundable 

CDCTC. The credit is generally available for working taxpayers with dependent children 

under age 13, but it is also available for working taxpayers supporting parents or other 

dependents needing care. The maximum credit rate is 35 percent of up to $3,000 of childcare 

expenses for 1 child and $6,000 for 2 or more children. The credit rate phases down 

beginning at incomes of $15,000 until the rate reaches 20 percent at incomes above $43,000.7

• American opportunity tax credit (AOTC) and lifetime learning credit (LLTC) – Taxpayers 

with expenses related to their or their dependent children’s post-secondary education may be 

eligible for the partially refundable AOTC of up to $2,500, with up to $1,000 of the credit 

being refundable. The credit phases out beginning at $80,000 of modified AGI ($160,000 for 

joint filers) and is available for 4 years. Students must attend at least half time to be eligible 

for this credit. Taxpayers may also be eligible for a nonrefundable LLTC for 20 percent of up 

to $10,000 per return of expenses required for enrollment per return. The phaseout range is 

the same as for the AOTC8 and there is no limit on the number of years the credit may be 

claimed or on the intensity of study. The expenses of any one student may be applied to only 

one credit. 

7 Taxpayers whose employers offer the benefit may also exclude from income for income and payroll tax purposes 

amounts contributed to a dependent care flexible spending program, up to certain limits. This exclusion is not 

modeled here.

8 The phaseout range for the LLTC was increased to match the phaseout range of the AOTC beginning in taxable 

year 2021 as part of the Consolidated Appropriations Act of 2020. U.S. Department of the Treasury

Office of Tax Analysis

August 18, 2021