Office of Tax Analysis 

Working Paper 119

May 2019

Tax Support for Families under Current Law 

2019 Law 

Deena Ackerman and Michael Cooper

The OTA Working Papers Series presents original research by the staff of the Office of Tax 

Analysis. These papers are intended to generate discussion and critical comment while 

informing and improving the quality of the analysis conducted by the Office. The papers are 

works in progress and subject to revision. Views and opinions expressed are those of the 

authors and do not necessarily represent official Treasury positions or policy. Comments are 

welcome, as are suggestions for improvements, and should be directed to the authors. OTA 

Working Papers may be quoted without additional permission. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019
TAX SUPPORT FOR FAMILIES UNDER CURRENT LAW

2019 LAW

May 2019

Deena Ackerman1

 and Michael Cooper2

This paper discusses major tax provisions that support typical families under current law, the 

number of families that benefit from these provisions, and the degree to which they benefit from 

these provisions. The paper discusses recent changes to these provisions. The paper also 

presents stylized marginal tax rates, average tax rates, and the tax support for dependents under 

current law. For Tax Year 2019, an estimated 64.1 million families receive $215.9 billion in 

benefit, with an average benefit from the credits of $3,366. 

Keywords: Families, Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Child and 

Dependent Care Tax Credit (CDCTC), Earned Income Tax Credit (EITC), American 

Opportunity Tax Credit (AOTC), Lifetime Learning Tax Credit (LLTC) and Other Dependent 

Tax Credit (ODTC).

1 Deena Ackerman: Office of Tax Analysis, U.S. Department of the Treasury, Deena.Ackerman@treasury.gov.

2 Michael Cooper: Office of Tax Analysis, U.S. Department of the Treasury, Michael.Cooper@treasury.gov.

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The federal income tax system supports families by reducing their tax liabilities, and thus 

increasing their after-tax incomes, in a number of different ways. Principally, this support takes 

the form of certain deductions and credits being made available only to taxpayers with children 

or other dependents. This paper discusses major tax provisions that support typical families 

under current law, the number of families that benefit from these provisions, and the degree to 

which they benefit from these provisions.1 

On December 22, 2017, President Trump signed Public Law 115-97, commonly referred to as 

the Tax Cuts and Jobs Act of 2017 (TCJA).2 In addition to lowering corporate tax rates and 

changing the taxation of business income, the TCJA made substantial changes to tax provisions 

that support families. In brief, the TCJA increased the standard deduction for all family types 

and effectively eliminated the personal and dependent exemptions.3 The TCJA increased the 

maximum value of the child credit (CTC) and the additional child credit (ACTC), and it created 

a new credit for dependents who do not qualify for the child credit, the other dependent credit 

(ODTC). Many of these changes became effective after December 31, 2017, and expire after 

December 31, 2025. The TCJA did not directly affect the American opportunity tax credit 

(AOTC), the child and dependent care credit (CDCTC), or, with the exception of changes to the 

rules about indexing certain tax parameters for inflation, the earned income tax credit (EITC) and 

the lifetime learning credit (LLTC). 

The paper begins in section 1 with a description of current law for the main provisions affecting 

families. Section 1 also includes a large set of tables showing estimates of the benefits to 

families from these provisions. Section 2 presents figures showing the stylized marginal tax 

rates, average tax rates, and the tax support for dependents under current law. Section 3 

1 This paper focuses exclusively on federal income tax benefits. Although state tax systems also offer support to 

families, the benefits from state provisions, including any interaction with federal benefits is not discussed.

2 The title of the law is “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution 

on the budget for fiscal year 2018.”

3 Technically, the value of the exemption is set to zero through 2025. The definitions used for determining whether 

a child or other dependent member of the household qualifies for key benefits remain in place. 

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concludes. A brief appendix with tables summarizing parameters and eligibility requirements for 

key provisions follows after the conclusion. 

1. Description and Analysis of the Main Tax Provisions Supporting Families with Children 

and Other Dependents. 

The main provisions that support families with children and other dependents are (1) the 

increased standard deduction and wider tax brackets allowed to unmarried individuals who file 

as a heads of household and (2) a set of targeted credits. This section describes these provisions 

and summarizes the benefits from each for families by the size of their adjusted gross income 

(AGI). Except where noted, parameters are indexed for inflation, and all estimated amounts are 

for Tax Year 2019.4 The estimates are produced by Treasury’s Individual Tax Model (ITM), 

which takes a stratified random sample of tax returns from a base year, forecasts the values of 

line items on the tax returns for 2019, and applies a very detailed tax calculator to analyze how 

changes in the tax system affect tax liability. For any given provision, the amount of benefit 

shown in Tables 1-7 is calculated by comparing estimated tax liability to what estimated tax 

liability would have been in absence of the provision (but with the law otherwise unchanged). 

Because the TCJA is relatively new and many of its provisions sunset, differences from prior law 

are highlighted in the text and summarized in the appendix. 

1.1 Head of household filing status 

Unmarried taxpayers who maintain a home for a child or other dependent5 may be eligible to file 

as a head of household, instead of as a single filer.6

 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.7 These two provisions reduce a head of 

4 Throughout this paper, taxpayers are considered to benefit from a provision (or set of provisions) if they pay at 

least five dollars less in taxes than they would have paid in absence of the provision (or set of provisions). Tax Year 

2020 estimates (which would be consistent with the first year of the budget window) are available upon request.

5 To qualify as a dependent relative (or other individual), an individual must reside with the taxpayer and have 

income below $4,250 (which would have been the dependent exemption amount in 2019 had it not been set to $0 by 

the TCJA).

6 In certain cases, a married taxpayer with children may be considered unmarried for tax purposes. The taxpayer 

must live apart from his or her spouse for the last six months of the year, maintain the household where the children 

reside for more than half the year, and be able to claim the children as dependents.

7 See Appendix Table A1 for a summary of the rate brackets. 

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household filer’s tax liability (before credits) compared to what it would be if the taxpayer filed 

as a single filer. 

Table 1 shows the distribution of the benefit of head of household filing status by AGI.8 An 

estimated 22.9 million families will file head of household returns in 2019. Among these 

returns, an estimated 13.5 million families receive $14.8 billion in benefits, with an average 

benefit of $1,092. 

The average value of head of household filing status rises with AGI across much of the income 

distribution.

9

 Among head of household filers who benefit from using this filing status, the 

average benefit is $626 for families with AGI of $50,000 or less, peaks at $2,312 for families 

with AGI between $75,000 and $100,000, and is $2,085 for families with AGI of $100,000 or 

more. Nearly all (95%) of families using head of household status with income of $30,000 or 

more benefit from this status. In contrast, only 25% of head of household families with incomes 

below $30,000 benefit from filing this way.10 Seventy-six percent of head of household families 

(60% of families benefitting) have incomes of $50,000 or less. 

1.2 Child credit (CTC), additional child tax credit (ACTC) and the other dependent credit 

(ODTC) 

Taxpayers may be eligible for a partially refundable CTC of $2,000 for each dependent child 

under age 17 who has a social security number (SSN). In general, the CTC is non-refundable, 

but taxpayers with insufficient tax liability to claim the entire CTC may claim the refundable 

ACTC, which equals 15% of earned income in excess of $2,500, up to the lesser of (1) the value 

of the unused portion of the child credit and (2) $1,400 per child. Taxpayers may also be eligible 

for a non-refundable ODTC of up to $500 for each qualifying dependent relative or child who is 

8 In this analysis, the filing status of head of household filers is eliminated; tax liability is recalculated for all current 

head of household filers using the parameters for single filers.

9 At incomes in excess of $100,000 the average benefit begins to decrease. Although all head of household filers 

may benefit from the wider brackets (see fn. 4), only those who take the standard deduction also benefit from the 

larger standard deduction. The higher AGI groups have progressively fewer taxpayers who take the standard 

deduction, and thus a smaller share of returns within group benefiting from both the effect of the wider brackets and 

the increased standard deduction. 

10 One reason low income single-parent families may not benefit from the head of household status is the presence 

of relatively large amounts of non -refundable credits. For example, suppose a taxpayer has non-refundable credits 

totaling $2,000 and has no refundable credits. Suppose also that the taxpayer has tax liability before credits of 

$1,500 if the taxpayer files as a single and $800 if the taxpayer files as a head of household. In both cases, the 

taxpayer’s liability after non-refundable credits have been applied is $0. 

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not eligible for the CTC. Thus, dependent children between the ages of 17 and 23 who have 

aged out of the CTC, younger children who do not have an SSN, and dependent relatives are all 

eligible for the ODTC. The family’s total CTC and ODTC phase out beginning at $200,000 of 

modified AGI ($400,000 for married couples filing a joint return). The maximum ACTC amount 

of $1,400 is indexed for inflation so that, over time, it will increase.11 Even with indexation the 

ACTC may never exceed $2,000. No other CTC, ODTC or ACTC parameters are indexed. 

Table 2 shows the combined benefit from the CTC, ACTC, and ODTC. An estimated 49.5 

million taxpayers receive $121.1 billion in benefits, with an average benefit of $2,448. Table 2A 

shows the distribution of benefits by AGI for the combined CTC and ACTC. An estimated 39.4 

million families receive $88.1 billion in benefits from the combined CTC and ACTC, with an 

average benefit of $2,234. Table 2B separately shows the benefits from the refundable portion 

(the ACTC). An estimated 22.0 million families receive $38.2 billion in benefits from the 

ACTC, with an average benefit of $1,740. Fifty six percent of the total number of families 

benefitting from the child credit receives at least some of their total child credit as a refund, and 

43% of the total benefits received are refunded.

12 

Table 2C shows the distribution of benefits by AGI for the ODTC alone. An estimated 15.4 

million taxpayers receive $9.7 billion in benefits, with an average benefit of $628. Table 2D 

shows the distribution of the benefits lost to families due to the provision under the TCJA that 

restricts the CTC and the ACTC to children with SSNs. In 2019 an estimated 1.6 million 

families whose children do not have SSNs will pay an average of $4.1 billion more in taxes–an 

average increase of $2,526 relative to what they would have paid in absence of this new 

restriction. 

The TCJA made the following changes to the CTC, ACTC, and ODTC for 2019. All 

comparisons are made against what the law would have been in 2019 absent the changes made 

by the TCJA. 

11 There was no increase in this parameter for 2019. 12 Low-income taxpayers will not receive the full benefit from the CTC and ACTC. For example, taxpayers with 1 

child must have gross income of at least $11,833 to receive the full $1,400 of ACTC. To receive the full $2,000, a 

taxpayer must have gross income of at least $30,395 if filing a joint return or $24,345 if filing as a head of 

household. If the family also has child and dependent care expenses, the minimum incomes necessary to receive the 

full $2,000 child credit would be about $37,395 if filing a joint return and $32,345 if filing as a head of household. 

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• Under the TCJA, the maximum CTC is $2,000 in 2019, compared to $1,000 under prior 

law. 

• Under the TCJA, the maximum ACTC is $1,400 in 2019, compared to $1,000 under prior 

law. 

• Under the TCJA, the maximum ACTC is indexed for inflation. It is not indexed for 

inflation under prior law. 

• Under the TCJA, to qualify for the ACTC, the taxpayer must have $2,500 of earnings in 

2019, compared to $3,000 under prior law. 

• Under the TCJA, dependents with Individual Taxpayer Identification Numbers (ITINs) 

are not eligible for the CTC or the ACTC. They are eligible under prior law. 

• Under the TCJA, personal and dependent exemptions have effectively been eliminated. 

They would have been worth $4,250 in 2019 under prior law. The TCJA created the 

$500 non-refundable ODTC, which largely replaces the tax benefits lost from the 

effective elimination of dependent exemptions. 

• Under the TCJA, the family’s total CTC and ODTC is phased out beginning at $200,000 

($400,000 in the case of a joint return). Under prior law, the CTC phased out beginning 

at $75,000 ($110,000 in the case of a joint return). 

These provisions of the TCJA sunset at the end of 2025, after which these provisions revert to 

prior law. 

1.3 Earned income tax credit (EITC) 

Taxpayers 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 increases further. The credit phases out 

based on the greater of (1) earned income and (2) AGI. 

The credit begins to phase out at a higher income level for married taxpayers. The intention of 

this is to counteract work disincentives faced by the secondary earner. This benefit is known as 

EITC marriage penalty relief. 

The major parameters of the EITC are indexed for inflation. 

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The credit is more generous for families with more children.

13,14 Taking the one-child case as an 

example, in 2019, the credit phases in at a rate of 34% of income up to $10,370, yielding a 

maximum credit of $3,526. Beginning at $19,030 of income ($24,820 for joint filers), the credit 

begins phasing down at a rate of 15.98%, phasing out completely at incomes over $41,094 

($46,884 for joint filers). In 2019, the maximum EITC for taxpayers without children is $529, 

while the maximum EITC for taxpayers with 3 or more children is $6,557. 

Children may qualify the taxpayer for the EITC even if the children are self-supporting so long 

as the other qualifying child requirements (relationship of the children to the taxpayer, how long 

and with whom the children reside during the year, age of the children, and whether the children 

have an SSN) are met. In general, a qualifying child must be under 19 years of age. However, 

the age limit is extended to under 24 for full-time students15 and eliminated for children who are 

permanently and totally disabled. 

Table 3 shows the distribution of the EITC by AGI. An estimated 27.9 million families receive 

$69.6 billion in benefits, with an average benefit of $2,493. Table 3A shows the benefit to 

married couples from EITC marriage penalty relief. An estimated 4.5 million families receive 

$3.7 billion in benefits, with an average benefit of $824. Table 3B shows the benefit to families 

from the EITC for qualifying children who are over age 18. An estimated 3.3 million families 

receive $7.3 billion in benefits, with an average benefit of $2,211. 

The EITC is substantially more generous to families with children. Tables 3C and 3D show the 

benefit to families from the EITC separately for families with qualifying children and without 

qualifying children, respectively. An estimated 20.6 million families receive $67.3 billion in 

EITC benefits, with an average benefit of $3,276. In contrast, an estimated 7.3 million families 

and individuals without qualifying children receive $2.3 billion in EITC benefits, with an 

average benefit of $308. 

13 There are four different EITC schedules, for those with zero, one, two, and three or more qualifying children. 14 Married taxpayers must file jointly in order to claim the EITC; married couples filing separately are not eligible 

for this credit. 

15 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 in certain farm-related programs. Full-time is defined by 

each educational organization. In general, it corresponds to at least 12 credit hours or their equivalent. 

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The TCJA made the following changes to the EITC for 2019. All comparisons are made against 

what the law would have been in 2019 absent the changes made by the TCJA. 

• The EITC is now indexed by the chained CPI, which results in a slightly smaller annual 

increase than would have occurred under prior law. This change is permanent. 

1.4 Child and dependent care credit (CDCTC) 

Taxpayers with expenses for caring for a qualifying individual, which may be a child or an adult, 

may be eligible for the 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.16 

The maximum credit is for 35% of up to $3,000 of child care expenses in the case of 1 child and 

expenses of up to $6,000 in the case of 2 or more children. The credit rate phases down 

beginning at incomes of $15,000 until the rate reaches 20% at incomes above $43,000. The 

CDCTC parameters are not indexed for inflation. 

Table 4 shows the distribution of this credit by AGI.17 An estimated 5.9 million families receive 

$3.2 billion in benefits, with an average benefit of $551.18 

The CDCTC is unchanged by TCJA. Because the CDCTC is non-refundable, to the extent that 

low- to moderate-income families face a lower tax liability before credits because of the increase 

in the standard deduction and reduced tax rates from the TCJA, they will receive less CDCTC. 

1.5 Education Credits: American opportunity 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 or the non-refundable LLTC. In any given 

16 Special rules apply to allow married couples to claim the credit if the spouse is a full-time student. 17 Table 4 includes a small number of families who have expenses for the care of disabled dependents other than 

their young children.

18 A second child and dependent care benefit is available to families whose employer offers a Section 125 flexible 

spending account (FSA). Participating taxpayers may exclude from income (for both income and payroll tax 

purposes) up to $5,000 of eligible expenses per return paid through the account. In 2019, an estimated 1.5 million 

families excluded $5.4 billion from income through a dependent care FSA. 

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year, a taxpayer may only claim one of these credits for each student in the family for whom 

there are education expenses.19 

To be eligible for the AOTC, the student must attend a post-secondary school at least half-time 

(and be enrolled in a degree or certificate program). For the AOTC, taxpayers may claim 100% 

of the first $2,000 of qualified expenses and 25% of the next $2,000 of expenses. Forty percent 

of the otherwise-allowable credit is refundable. Thus, taxpayers may claim an AOTC of up to 

$2,500 per student, up to $1,000 of which is refundable. The credit phases out beginning at 

$80,000 of modified AGI ($160,000 for joint filers) and is available for up to 4 years. None of 

the parameters of the AOTC, including the phase-out thresholds, is adjusted for inflation. 

Taxpayers may also claim a LLTC for 20% of up to $10,000 of tuition and required fees per 

return per year. The LLTC is available to part-time students. The credit phases out beginning at 

$58,000 of modified AGI ($116,000 for joint filers), and there is no limit on the number of years 

that a student is eligible for the LLTC. Only the phase-out thresholds for the LLTC are indexed 

for inflation. 

Table 5 shows the distribution of benefits from the combined AOTC and LLTC by AGI.20 An 

estimated 12.9 million families receive $20.3 billion in benefits, with an average benefit of 

$1,576. Table 5A shows that an estimated 3.1 million families receive $2.6 billion in benefits 

from the LLTC, with an average benefit of $831. Table 5B shows that an estimated 9.9 million 

families receive $12.4 billion in benefits from the AOTC, with an average benefit of $1,243. 

Table 5C shows that of these 9.9 million families, 6.1 million receive $5.8 billion in benefits in 

excess of their tax liability. The average benefit for this refundable portion of the AOTC was 

$941.21 In absence of the AOTC, some families currently benefitting from this credit would 

switch to claiming the LLTC. The amount the benefit from the AOTC is thus the amount they 

receive in excess of the available benefit from the LLTC.22 As a result, the amounts shown in 

Table 5 are less than the sum of the amounts in Tables 5B and 5C. 

19 In years prior to 2018, taxpayers may also have chosen to claim a tuition deduction instead of a tuition credit. 

Because this benefit has expired, it is not included in the analysis. 20 Table 5 includes families with qualifying education expenses for themselves as well as for their children. 21 The AOTC is partially refundable. Table 5C estimates the number of families that would be affected if the entire 

AOTC were converted into a non-refundable credit. Families with sufficient tax liability to claim the full credit 

would not be affected. 

22 No taxpayer eligible for both should prefer the LLTC to the AOTC. 

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The TCJA made the following changes to the AOTC and the LLTC for 2019. All comparisons 

are made against what the law would have been in 2019 absent the changes made by the TCJA. 

• The TCJA changed permanently how the phase-out thresholds of the LLTC are indexed 

by switching to the chained CPI. This results in a slightly smaller annual increase than 

would have occurred under prior law. The credits are otherwise unchanged. However, 

because the AOTC is partially refundable and the LLTC is non-refundable, to the extent 

that low- to moderate-income families face a lower tax liability before credits because of 

the increase in the standard deduction and reduced tax rates from the TCJA, they will 

receive less AOTC and LLTC. 

1.6 Summary Tables 

The tables presented so far in this section show the tax benefit from the main family-related 

provisions, taken one at a time. Table 6 shows the total number of families who benefit from at 

least one of the seven credits discussed.23 An estimated 64.1 million families receive $215.9 

billion in benefit, with an average benefit from the credits of $3,366. Families with AGI of 

$50,000 or below receive an average benefit of $3,468, and families earning more than $500,000 

(above the phase-out range for most credits) receive an average benefit of $658. 

Table 7 summarizes the information presented in Tables 1 through 6, with additional focus on 

the key features of the major provisions. For example, the benefit from EITC marriage penalty 

relief (row 3A) and the loosening of the age requirement for students and the disabled (row 3B) 

are shown separately from total EITC (row 3). 

Table 8 presents the estimated number of credits claimed and the amounts claimed for the main 

family-related provisions. In some cases, the number of families benefiting (or the amount of 

benefit received) is smaller than the number of claimants (or the amount claimed) for a particular 

provision. This difference occurs in cases where some families would have chosen an alternate 

credit if the one under consideration were repealed. For example, in absence of the CTC, nearly 

23 The benefit of head of household status and the exclusion for child and dependent care are not considered in 

Tables 6 through 8. 

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all current claimants would switch to the ODTC. At most, taxpayers would see their taxes 

increase by $1,500 and not the full $2,000 per child. 24 

2. Marginal and Average Tax Rates and Tax Support for Families with Children 

To understand better how the provisions of the tax code collectively affect families of different 

sizes and incomes, this section presents estimates of (1) the average income tax rate (tax liability 

after credits divided by AGI), (2) a stylized marginal tax rate, and, for families with children, (3) 

the tax benefits provided to the family because of the presence of the children. The figures 

contained in this section are illustrative and do not account for specific circumstances of any 

actual family. The estimates are based on the tax law for 2019. 

In order to produce these figures, a number of simplifying assumptions about the families are 

made. First, all income comes from wages, and families are only eligible for the benefits listed 

in section 1. Second, 15% of family income is spent on items that qualify for an itemized 

deduction.25 Examples of such items include mortgage interest expenses, state and local income 

and property tax payments, and charitable contributions. Third, taxpayers choose to itemize their 

deductions or claim the standard deduction in order to minimize their tax liability. 

The second and third assumptions have an important implication when trying to interpret the 

figures that follow. The lines labeled “marginal tax rate” are calculated as follows. At each AGI 

level, the taxpayer is given an extra $1,000 of wages.26 The second assumption implies the 

taxpayer therefore has an additional $150 of itemizable expenses. The taxpayer, by the third 

assumption, re-determines whether to itemize deductions or claim the standard deduction. 

Taxable income—in this case wages less either the standard deduction or itemized deductions— 

is then recalculated, and the relevant tax rates and credits are applied to determine the tax 

24 The number of credits claimed and the amount claimed shown in Table 8 also differ from the number of families 

benefiting shown in Tables 1 through 7 because the latter do not include dependent filers and ignore changes in tax 

of less than $5. 

25 To reflect the $10,000 cap on state and local tax deductions under TCJA, the previous Treasury assumption of 

18% has been decreased to 15%. 

26 Stylized marginal tax rates are calculated based on thousand dollar earnings increments, except in Figure 1 which 

(without loss of comparability) uses hundred dollar increments in order to conform to the lower income scale on the 

horizontal axis. 

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liability.27 The difference in liability is divided by the $1,000 change in income to get a stylized 

marginal tax rate. 

Figure 1 presents the stylized marginal tax rate and average tax rate faced by a single filer. The 

stylized marginal tax rate deviates from the statutory marginal rate schedule due to the EITC at 

low income levels and the switch to itemization at higher income levels. The EITC decreases the 

stylized marginal tax rate as the credit phases in and increases it as the credit phases out. 

Figure 2 presents on the left axis the stylized marginal tax rate and average income tax rate faced 

by a married filer with one dependent child but no child care expenses. The figure presents on 

the right axis the amount of tax support the family receives as a result of the child. The stylized 

marginal tax rate is large and negative as the EITC and ACTC phase in and is large and positive 

as the EITC phases out. If this figure were continued on for higher income families, there would 

be a temporary increase in the stylized marginal tax rate as the CTC begins to phase out at 

$400,000. 

Figure 2A presents the same information but focuses on families with low and modest incomes 

who are not able to claim the full child credit. This figure decomposes the total tax support for 

the child into the contribution of the CTC (green), the ACTC (gray), and the EITC (blue).28 

Families with the lowest incomes will receive less than the full value of the CTC due to 

insufficient income, and the benefit to families with slightly more income is constrained by the 

$1,400 limit on the credit’s refundability. 

Figure 3 replicates Figure 2 for a head of household filer with one dependent child but no 

childcare expenses. The stylized marginal tax rate shares all of the key features seen in Figure 2, 

but with a less generous underlying statutory marginal rate schedule and credits that phase out at 

lower income levels. The amount of tax support for this family type includes the added element 

that the child creates eligibility for head of household status—and thus a more generous rate 

27 For taxpayers who claim the standard deduction, taxable income increases by the $1,000 increase in wages. The 

second assumption implies that, for taxpayers who itemize their deductions, taxable income increases by $850—the 

$1,000 increase in wages less 15%, or $150, for the commensurate increase in itemizable expenses. This implies 

that once a taxpayer begins to itemize deductions (and ignoring phase-outs of any credits), the stylized marginal tax 

rate is equal to the statutory marginal rate reduced by 15%.

28 The tax support for a child due to the EITC is the value of the EITC for a family with one child less the value of 

the EITC to that family in absence of that child. This effect is most visible at the lowest income, where the EITC for 

workers without children is also phasing in. 

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schedule than applies to other unmarried taxpayers. The portion of the tax support due to the 

difference in schedules is shown in a lighter shade than the portion due to the remaining childrelated provisions. 

Figure 4 presents the stylized marginal tax rate and average tax rate faced by a married couple 

with a dependent student who is assumed to have sufficient education expenses to qualify for the 

maximum amount of the AOTC. The figure also presents the amount of tax support the filer 

receives as a result of the student. Key differences between this figure and Figure 2 are the large 

initial benefit from the refundable portion of the AOTC, which affects tax support but not 

stylized marginal rates; eligibility for the ODTC instead of the CTC and ACTC; and high 

stylized marginal tax rates as the AOTC phases out. 

Figure 5 presents the stylized marginal tax rate and average tax rate faced by a joint filer with 

one dependent child and sufficient child care expenses to qualify for the maximum CDCTC. The 

figure also presents the amount of tax support the filer receives as a result of the child. Key 

differences between this figure and Figure 2 are the higher marginal rates for taxpayers earning 

modest incomes as the CDCTC phases down and the additional benefit from this credit for 

taxpayers at all but the lowest levels of income. 

3. Conclusion 

This paper has presented an overview of the main tax provisions that provide tax support to 

typical American families with children and other dependents under current tax law. The benefit 

to families from each of the provisions (and sometimes select features of a provision) are 

presented by the taxpayer’s AGI. Estimated counts and dollar amounts of claims for the 

provisions (and sometimes select features of a provision) are presented for all taxpayers. Finally, 

select stylized marginal tax rates and average tax rates that illustrate key figures of the main tax 

benefits to families are presented. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

12 
.. ~, .. , 

• ~a 

t ;: ' ., ... , .. 

Tax Support for Families under Current Law 

Tables and Figures 

2019 Law 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

13 
 

 

 

 

.. ~, .. , 

• ~a 

t ;: ' ., ... , .. 

Tables and Figures 

Section 1: Description and Analysis of the Main Tax Provisions Supporting Families with 

Children and Other Dependents. 

The following tables describe the benefit of each of the main provisions affecting families, by 

AGI under the TCJA for 2018. An additional table shows the estimated number of claimants for 

each provision. 

Table 1. Estimated Benefit from Head of Household Filing Status 

Table 2. Estimated Benefit from the Child Credit (CTC), Additional Child Credit (ACTC) and 

Other Dependent Credit (ODTC) 

Table 2A. Estimated Benefit from the CTC and ACTC 

Table 2B. Estimated Benefit from the ACTC 

Table 2C. Estimated Benefit from the ODTC 

Table 2D. Estimated Tax Increases from the CTC/ACTC Social Security Number 

Requirement 

Table 3. Estimated Benefit from the Earned Income Tax Credit (EITC) 

Table 3A. Estimated Benefit from the EITC Marriage Penalty Relief 

Table 3B. Estimated Benefit from the EITC for Students and Disabled Children 

Table 3C. Estimated Benefit from the EITC for Families with Children 

Table 3D. Estimated Benefit from the EITC for Families and Individuals without Children 

Table 4. Estimated Benefit from the Child and Dependent Tax Credit (CDCTC) 

Table 5. Estimated Benefit from the Education Credits: American Opportunity Credit (AOTC) 

and Lifetime Learning Credit (LLTC) 

Table 5A. Estimated Benefit from the LLTC 

Table 5B. Estimated Benefit from the AOTC 

Table 5C. Estimated Benefit from the Refundability of the AOTC 

Table 6. Estimated Benefit from All Credits in Tables 2-5 

Table 7. Summary Table of Estimated Benefits 

Table 8. Number of Claims and Total Amounts Claimed for the Main Family Provisions 

Table A1. Tax Rates and Tax Brackets under Current Law 

Table A2. Summary of Eligibility Requirements for CTC, ACTC, ODTC, and EITC. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

14 
 

 

 

.. ~, .. , 

• ~a 

t ;: ' ., ... , .. 

Section 2. Stylized Marginal and Average Tax Rates and Tax Support for Families with 

Children 

Marginal and average tax rates vary greatly as income increases due to the interaction of the tax 

schedules and the family credits. These figures show the “skylines” and the tax support for a 

child for a set of typical family types. 

Figure 1. Stylized Marginal and Average Tax for Single Filer with No Dependent Children or 

Dependents 

Figure 2. Stylized Marginal and Average Tax for a Joint Filer with One Dependent Child under 

17 

Figure 2A. A Focus on Low Income Families: Joint Filer with One Dependent Child under 17 

Figure 3. Stylized Marginal and Average Tax for a Head of Household Filer with One 

Dependent Child under 17 

Figure 4. Stylized Marginal and Average Tax for a Joint Filer with One Dependent Child in 

College 

Figure 5. Stylized Marginal and Average Tax for a Joint Filer with One Dependent Child under 

13 and Qualified Expenses for the CDCTC 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

15 
 

 

 

 

 

 

 

 

 

55 0.0 0 2,245

Run: 88542_2019 

I I I I 

Table 1 

Estimated Benefit from 

Head of Household (HoH) Filing Status 

Tax Year 2019 

Adjusted 

Gross 

Income 

Families 

Filing HoH 

(Thousands) 

Families 

Benefiting 

(Thousands) 

Total 

Benefit 

($Millions) 

Average 

Benefit 

($) 

0 <= 15,000 4,249 26 3 111 

15,000 <= 30,000 7,501 2,892 1,253 433 

30,000 <= 40,000 3,441 3,041 2,182 718 

40,000 <= 50,000 2,281 2,203 1,674 760 

50,000 <= 60,000 1,546 1,519 1,520 1,001 

60,000 <= 75,000 1,389 1,380 2,721 1,972 

75,000 <= 100,000 1,242 1,240 2,868 2,312 

100,000 <= 200,000 1,012 1,010 2,139 2,118 

200,000 <= 500,000 173 170 326 1,914 

500,000 <= 1000,000 26 26 52 2,025 

1,000,000 <= 5,000,000 12 12 22 1,935 

5,000,000 < ******* 1 1 2 1,824 

Total1 22,929 13,521 14,763 1,092 

Office of Tax Analysis Feb 08, 2019 

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 

May 2019

16 
 

 

 

 

 

 

 

 

 

0.1 137 1,988

Run: 88543_2019 

I I I I 

Table 2 

Estimated Benefit from 

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

and Other Dependent Credit (ODTC) 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 4,981 5,570 1,118 

15,000 <= 30,000 10,098 19,712 1,952 

30,000 <= 40,000 5,254 13,051 2,484 

40,000 <= 50,000 4,146 11,389 2,747 

50,000 <= 60,000 3,319 9,112 2,745 

60,000 <= 75,000 3,859 10,869 2,817 

75,000 <= 100,000 5,066 14,424 2,847 

100,000 <= 200,000 9,344 27,278 2,919 

200,000 <= 500,000 3,303 9,507 2,878 

500,000 <= 1,000,000 11 11 1,034 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 49,449 121,061 2,448 

Office of Tax Analysis Feb 08, 2019 

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 

May 2019

17 
 

 

 

 

 

 

 

 

 

 

0.1 134 1,970

Run: 88544_2019 

I I I I 

Table 2A 

Estimated Benefit from 

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

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 4,892 5,513 1,127 

15,000 <= 30,000 8,657 16,927 1,955 

30,000 <= 40,000 4,037 9,248 2,291 

40,000 <= 50,000 3,139 7,779 2,478 

50,000 <= 60,000 2,463 6,144 2,494 

60,000 <= 75,000 2,868 7,368 2,569 

75,000 <= 100,000 3,816 9,831 2,576 

100,000 <= 200,000 6,986 18,609 2,664 

200,000 <= 500,000 2,497 6,543 2,620 

500,000 <= 1,000,000 11 11 1,034 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 39,434 88,107 2,234 

Office of Tax Analysis Feb 08, 2019 

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. 

2 SSN Requirement remains in place. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

18 
 

 

 

 

 

 

 

 

 

 

0.1 131 1,949

Run: 88545_2019 

I I I I 

Table 2B 

Estimated Benefit from 

Refundability of Additional Child Tax Credit (ACTC) 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 4,890 5,508 1,126 

15,000 <= 30,000 8,647 16,470 1,905 

30,000 <= 40,000 3,758 7,274 1,936 

40,000 <= 50,000 2,138 4,511 2,109 

50,000 <= 60,000 1,217 2,237 1,839 

60,000 <= 75,000 820 1,439 1,755 

75,000 <= 100,000 342 495 1,448 

100,000 <= 200,000 79 141 1,778 

200,000 <= 500,000 4 9 2,321 

500,000 <= 1,000,000 0 0 605 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 21,962 38,215 1,740 

Office of Tax Analysis Feb 08, 2019 

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 

May 2019

19 
 

 

 

 

 

 

 

 

 

0.0 0 704

Run: 88546_2019 

I I I I 

Table 2C 

Estimated Benefit from 

Other Dependent Tax Credit 

Tax Year 2019 

Adjusted 

Gross 

Income 

Families 

Benefiting 

(Thousands) 

Total 

Benefit 

($Millions) 

Average 

Benefit 

($) 

0 <= 15,000 82 11 140 

15,000 <= 30,000 1,645 734 446 

30,000 <= 40,000 1,795 1,161 647 

40,000 <= 50,000 1,613 1,073 665 

50,000 <= 60,000 1,386 934 674 

60,000 <= 75,000 1,606 1,047 652 

75,000 <= 100,000 2,063 1,325 642 

100,000 <= 200,000 3,841 2,470 643 

200,000 <= 500,000 1,373 925 674 

500,000 <= 1,000,000 2 0 81 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 15,405 9,681 628 

Office of Tax Analysis Feb 08, 2019 

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 

May 2019

20 
 

 

 

 

 

 

 

 

 

 

0.1 112 997

Run: 88547_2019 

I I I I 

Table 3 

Estimated Benefit from 

Earned Income Tax Credit (EITC) 

Tax Year 2019 

Families Total Average 

Adjusted Gross Benefiting2 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 12,052 20,288 1,683 

15,000 <= 30,000 9,569 38,303 4,003 

30,000 <= 40,000 4,064 8,601 2,117 

40,000 <= 50,000 1,850 2,166 1,171 

50,000 <= 60,000 272 125 459 

60,000 <= 75,000 0 0 0 

75,000 <= 100,000 0 0 0 

100,000 <= 200,000 0 0 0 

200000 <= 500000 0 0 0 

500000 <= 1000000 0 0 0 

1000000 <= 5000000 0 0 0 

5000000 < ******* 0 0 0 

Total1 27,920 69,595 2,493 

Office of Tax Analysis Feb 11, 2019 

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. 

2 In 2019, the phase-out range of the EITC for joint filers begins at incomes $5,790 higher than for other 

filers ($5,800 for joint filers without children). 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

21 
 

 

 

 

 

 

 

 

 

 

0.0 7 543

Run: 88548_2019 

I I I I 

Table 3A 

Estimated Benefit from 

EITC Marriage Penalty Relief 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 337 107 317 

15,000 <= 30,000 1,614 1,152 714 

30,000 <= 40,000 1,178 1,289 1,094 

40,000 <= 50,000 1,084 1,027 948 

50,000 <= 60,000 271 125 461 

60,000 <= 75,000 0 0 0 

75,000 <= 100,000 0 0 0 

100,000 <= 200,000 0 0 0 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 4,497 3,707 824 

Office of Tax Analysis Feb 11, 2019 

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. 

2 In 2019, the phase-out range of the EITC for joint filers begins at incomes $5,790 higher than for other filers 

($5,800 for joint filers without children). 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

22 
 

 

 

 

 

 

 

 

 

 

 

 

0.0 18 2,826

Run: 88549_2019 

I I I I 

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) 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2,3 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 703 1,748 2,487 

15,000 <= 30,000 1,415 4,015 2,837 

30,000 <= 40,000 810 1,247 1,539 

40,000 <= 50,000 332 279 839 

50,000 <= 60,000 47 19 412 

60,000 <= 75,000 0 0 0 

75,000 <= 100,000 0 0 0 

100,000 <= 200,000 0 0 0 

200,000 <= 500,000 0 0 0 

5,00000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 3,313 7,326 2,211 

Office of Tax Analysis Feb 11, 2019 

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. 

2 In 2019, the phase-out range of the EITC for joint filers begins at incomes $5,790 higher than for other filers 

($5,800 for joint filers without children). 

3 In general, a qualifying child must be under 19 years of age. Exceptions are in place for full-time 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. 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. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

23 
 

 

 

 

 

 

 

 

 

 

 

 

0.0 93 3,151

Run: 88550_2019 

I I I I 

Table 3C 

Estimated Benefit from 

Earned Income Tax Credit (EITC) for Families with Children 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2,3 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 5,341 18,124 3,393 

15,000 <= 30,000 8,998 38,220 4,248 

30,000 <= 40,000 4,064 8,601 2,117 

40,000 <= 50,000 1,850 2,166 1,171 

50,000 <= 60,000 272 125 459 

60,000 <= 75,000 0 0 0 

75,000 <= 100,000 0 0 0 

100,000 <= 200,000 0 0 0 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 20,555 67,329 3,276 

Office of Tax Analysis Feb 11, 2019 

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. 

2 In 2019, the phase-out range of the EITC for joint filers begins at incomes $5,790 higher than for other filers 

($5,800 for joint filers without children). 

3 In general, a qualifying child must be under 19 years of age. Exceptions are in place for full-time 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. 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. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

24 
 

 

 

 

 

 

 

 

 

 

 

 

0.1 20 236

Run: 88551_2019 

I I I I 

Table 3D 

Estimated Benefit from 

Earned Income Tax Credit (EITC) for Adults without Children 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2,3 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 6,711 2,163 322 

15,000 <= 30,000 571 82 144 

30,000 <= 40,000 0 0 0 

40,000 <= 50,000 0 0 0 

50,000 <= 60,000 0 0 0 

60,000 <= 75,000 0 0 0 

75,000 <= 100,000 0 0 0 

100,000 <= 200,000 0 0 0 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 7,365 2,265 308 

Office of Tax Analysis Feb 11, 2019 

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. 

2 In 2019, the phase-out range of the EITC for joint filers begins at incomes $5,790 higher than for other filers 

($5,800 for joint filers without children). 

3 In general, a qualifying child must be under 19 years of age. Exceptions are in place for full-time 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. 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. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

25 
 

 

 

 

 

 

 

 

0.0 0 0

I I I I 

Table 4 

Estimated Benefit from 

Child and Dependent Care Tax Credit 

Tax Year 2019 

Adjusted 

Gross 

Income 

Families 

Benefiting 

(Thousands) 

Total 

Benefit 

($Millions) 

Average 

Benefit 

($) 

0 <= 15,000 1 1 1,000 

15,000 <= 30,000 203 66 323 

30,000 <= 40,000 560 261 466 

40,000 <= 50,000 529 282 532 

50,000 <= 60,000 441 251 568 

60,000 <= 75,000 541 294 544 

75,000 <= 100,000 848 481 568 

100,000 <= 200,000 1,900 1,118 588 

200,000 <= 500,000 750 423 564 

500,000 <= 1,000,000 88 52 593 

1,000,000 <= 5,000,000 22 14 641 

5,000,000 < ******* 1 1 688 

Total1 5,886 3,244 551 

Office of Tax Analysis Feb 11, 2019 

Run: 88553_2019 

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 

May 2019

26 
 

 

 

 

 

 

 

 

 

 

0.0 42 1,056

Run: 88555_2019 

I I I I 

Table 5 

Estimated Benefit from 

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

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 2,314 2,192 947 

15,000 <= 30,000 3,018 3,812 1,263 

30,000 <= 40,000 1,434 2,198 1,533 

40,000 <= 50,000 1,181 2,137 1,809 

50,000 <= 60,000 849 1,599 1,883 

60,000 <= 75,000 918 1,833 1,997 

75,000 <= 100,000 1,160 2,371 2,043 

100,000 <= 200,000 1,997 4,164 2,085 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 12,912 20,349 1,576 

Office of Tax Analysis Feb 14, 2019 

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 

May 2019

27 
 

 

 

 

 

 

 

 

 

0.0 0 286

Run: 88556_2019 

I I I I 

Table 5A 

Estimated Benefit from 

Lifetime Learning Credit 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 136 17 127 

15,000 <= 30,000 645 417 646 

30,000 <= 40,000 443 388 877 

40,000 <= 50,000 406 407 1,003 

50,000 <= 60,000 330 328 996 

60,000 <= 75,000 316 253 800 

75,000 <= 100,000 374 393 1,051 

100,000 <= 200,000 494 409 829 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 3,144 2,613 831 

Office of Tax Analysis Feb 14, 2019 

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 

May 2019

28 
 

 

 

 

 

 

 

 

 

0.0 41 1,068

Run: 88557_2019 

I I I I 

Table 5B 

Estimated Benefit from 

American Opportunity Tax Credit 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 2,179 2,133 979 

15,000 <= 30,000 2,372 2,475 1,043 

30,000 <= 40,000 994 1,100 1,106 

40,000 <= 50,000 784 893 1,139 

50,000 <= 60,000 542 643 1,186 

60,000 <= 75,000 637 1,003 1,575 

75,000 <= 100,000 833 1,124 1,348 

100,000 <= 200,000 1,565 2,948 1,884 

200,000 <= 500,000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 9,944 12,360 1,243 

Office of Tax Analysis Feb 14, 2019 

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. 

2 In absence of the AOTC, some taxpayers would claim the LLTC instead. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

29 
 

 

 

 

 

 

 

 

 

 

0.0 41 1,067

Run: 88558_2019 

I I I I 

Table 5C 

Estimated Benefit from 

American Opportunity Tax Credit Refundability 

Tax Year 2019 

Adjusted Families Total Average 

Gross Benefiting2 Benefit Benefit 

Income (Thousands) ($Millions) ($) 

0 <= 15,000 2,178 2,132 978 

15,000 <= 30,000 2,298 2,211 962 

30,000 <= 40,000 757 641 848 

40,000 <= 50,000 511 434 850 

50,000 <= 60,000 208 192 923 

60,000 <= 75,000 103 84 811 

75,000 <= 100,000 44 41 949 

100,000 <= 200,000 11 11 1,057 

200000 <= 500000 0 0 0 

500,000 <= 1,000,000 0 0 0 

1,000,000 <= 5,000,000 0 0 0 

5,000,000 < ******* 0 0 0 

Total1 6,147 5,787 941 

Office of Tax Analysis Feb 14, 2019 

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. 

2 Even though all 9.9 million families claiming an AOTC claim the 40% of the credit that is refundable, only 

families with insufficient tax liability to offset their full credit benefit from this refundability. Families that have 

sufficient tax liability would receive their full credit even without refundability, and are therefore not included 

among the 6.1 million families benefiting from refundability. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

30 
 

 

 

 

 

 

 

 

0.2 290 1,542

Run: 88559_2019 

I I I I 

Table 6 

Estimated Benefit from All Family Credits 

Earned Income Credit (EITC), Child Credit (CTC), Additional Child Credit (ACTC) 

Other Dependent Credit (ODTC), Child and Dependent Care Credit (CDCTC), 

Lifetime Learning Credit (LLTC), and American Opportunity Credit (AOTC) 

Tax Year 2019 

Families Total Average 

Adjusted Benefiting Benefit Benefit 

Gross Income (Thousands) ($Millions) ($) 

0 <= 15,000 13,650 28,068 2,056 

15,000 <= 30,000 13,210 62,466 4,729 

30,000 <= 40,000 6,221 24,703 3,971 

40,000 <= 50,000 4,728 16,246 3,436 

50,000 <= 60,000 3,661 11,195 3,058 

60,000 <= 75,000 4,129 13,026 3,155 

75,000 <= 100,000 5,287 17,284 3,269 

100,000 <= 200,000 9,611 32,564 3,388 

200,000 <= 500,000 3,330 9,931 2,982 

500,000 <= 1,000,000 96 64 661 

1,000,000 <= 5,000,000 22 14 641 

5,000,000 < ******* 1 1 688 

Total1 64,135 215,852 3,366 

Office of Tax Analysis Feb 14, 2019 

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 

May 2019

31 
 

I I I I 

Table 7 

Summary of Tax Support for Families from Main Family-Related Tax Provisions 

Tax Year 2019 

Counts and Amounts of Families who benefit from ...1 

Total 

Families2 

(millions) 

Total 

Value 

($billions) 

Average 

Benefit 

($) 

1 Head of Household Filing Status 

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

and Other Dependent Credit (ODTC) 

2A Child Tax Credit and Additional Child Tax Credit 

2B Additional Child Tax Credit (ACTC) 

(make ACTC nonrefundable) 

2C Other Dependent Credit 

3 Earned Income Tax Credit (EITC) 

3A EITC Marriage Penalty Relief3 

3B EITC Students and Disabled 

(repeal EITC for qualifying children >18) 

3C EITC for Families with Children 

3D EITC for Families with No Children 

4 Child and Dependent Care Tax Credit 

5 Education Credits (AOTC and LLTC) 

5A Lifetime Learning Credit (LLTC) 

5B American Opportunity Tax Credit (AOTC) 

5C Refundability of AOTC4 

(make AOTC nonrefundable) 

6 All Major Family and Education Credits5 

13.5 

49.4 

39.4 

22.0 

15.4 

27.9 

4.5 

3.3 

20.6 

7.4 

5.9 

12.9 

3.1 

9.9 

6.1 

64.1 

14.8 1,092 

121.1 2,448 

88.1 2,234 

38.2 1,740 

9.7 628 

69.6 2,493 

3.7 824 

7.3 2,211 

67.3 3.3 

2.3 0.3 

3.2 551 

20.3 1,576 

2.6 831 

12.4 1,243 

5.8 941 

215.9 3,366 

Office of Tax Analysis February 14, 2019 

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

credit (LLTC) and the other dependent 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 2018, the phaseout range of the EITC for joint filers begins at incomes $5,790 higher than for other filers ($5,800 for joint filers 

without children). 

4 Even though all 9.9 million families claiming an AOTC claim the 40% of the credit that is refundable, only families with insufficient 

tax liability to offset their full credit benefit from this refundability. Families that have sufficient tax liability would receive their full 

credit even without refundability, and are therefore not included among the 6.1 million families benefiting from refundability. 

5 The tax benefits included in Line 6 are the seven credits listed in fn 1. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

32 
 

 

 

 

 

I I I I 

Table 8 

Number of Families Claiming and Amounts Claimed for Key Family Credits1 

Tax Year 2019 

Tax Credit 

Number of 

Families 

Amount 

Claimed 

Average 

Claimed 

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

2. Total CTC, ACTC and ODTC 50.0 121.7 2,435 

2A. Total CTC + ACTC 39.5 110.9 2,807 

● CTC 30.0 72.7 2,423 

2B. ACTC 22.0 38.2 1,738 

2C. ODTC 17.2 10.8 626 

3. Total EITC 28.0 69.6 2,488 

3C. EITC for workers with children 20.6 67.3 3,275 

3D. EITC for workers without children 7.4 2.3 305 

4. Total CDCTC 6.7 3.9 580 

5. Total Education Credits 13.1 21.1 1,611 

5A. LLTC 3.3 2.8 841 

5B. Total AOTC2 9.9 18.2 1,835 

● AOTC nonrefundable portion 7.3 8.6 1,166 

5C. AOTC refundable portion 9.9 9.7 974 

6. Total EITC, CTC, ACTC & ODTC, CDCTC, & Educ. Credits 64.3 216.2 3,363 

Office of Tax Analysis February 14, 2018 

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

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

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

included. The line numbers correspond to Tables 1-7. Lines that are not numbered (but begin with a bullet) do not 

correspond to an earlier table. 

2The AOTC is calculated in two pieces: 40% of the otherwise allowable AOTC is refundable and the remaining 60% is 

not refundable. Thus, all families claiming an AOTC receive the refundable portion of the AOTC but only those families 

with tax liability to offset are able to claim all or part of the nonrefundable portion of the AOTC. Of the 9.9 million 

families claiming an AOTC, 6.1 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 

May 2019

33 
 

 

~ -

- ' I 

I I 

I I _J 

Table A1 

Tax Rates, and Tax Brackets, and Standard Deduction (SD) under Current Law 

for Single, Head of Household and Joint Filers 

Tax Year 2019 

Marginal 

Tax 

Rate 

Filing Status 

Single Filer 

(SD = $12,200) 

Head of Household Filer 

(SD = $18,300) 

Married Filer 

(SD = $24,400) 

Taxable 

Income 

Over... 

($) 

Tax at 

Beginning of 

Bracket 

($) 

Taxable 

Income 

Over... 

($) 

Tax at 

Beginning of 

Bracket 

($) 

Taxable 

Income 

Over... 

($) 

Tax at 

Beginning of 

Bracket 

($) 

10% 0 0 0 0 0 

12% 9,700 970 13,850 1,385 19,400 1,940 

22% 39,475 4,543 52,850 6,065 78,950 9,086 

24% 84,200 14,383 84,200 12,962 168,400 28,765 

32% 160,725 32,749 160,700 31,322 321,450 65,497 

35% 204,100 46,629 204,100 45,210 408,200 93,257 

37% 510,300 153,799 510,300 152,380 612,350 164,710 

Office of Tax Analysis November 15, 2018 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

34 

0 
 

 

 

 

 

 

 

 

 

 

 

 

Table A2 

Elgibility Rules for Dependent Status, Child Credit, Additional Child Tax Credit, the Other Dependent Credit 

and the Earned Income Tax Credit 

2019 Parameter Values 

Eligibility Criteria for Dependent Child (QDC) and 

Dependent Relative (QDR) 

(§ 151-152) 

Child Tax Credit 

Additional Child Tax Credit 

(CTC, ACTC - § 24) 

Other Dependent 

Tax Credit 

(ODTC - § 24) 

Earned Income 

Tax Credit 

(EITC - § 32) 

Definition of Main eligibility criteria for certain other benefits, including $2,000 nonrefundable credit per $500 nonrefundable credit per Refundable credit of up to $6,557 

Benefit/Criteria the child credit and credit for other dependents (other 

restrictions will apply). 

child. Refundable to the extent 

that 15% of earnings in excess of 

$2,500 exceeds lesser of 

otherwise allowable credit limited 

by tax liability or $1,400. 

dependent. based on number of children and 

filing status. Phases in with 

earnings and phases out on 

greater of earnings and AGI. 

Income Criteria No income criteria Sum of CTC and ODTC phase 

out sequentially with AGI in 

excess of $200,000 ($400,000). 

Sum of CTC and ODTC phase 

out with AGI in excess of 

$200,000 ($400,000 joint). 

Taxpayer may not have more 

than $3,600 in unearned income. 

Phaseout begins at $19,030 

($24,820 joint). 

Definition In general, a QDC/QDR must meet age, residency, Generally, the same as definition Generally, the same as definition Generally, the same as definition 

Qualifying relationship, and support criteria. (See following rows for of a QDC (differences noted of a QDR (differences below). of a QDC (differences noted 

Individual differences and details). below). Also all QDC who do not meet 

CTC requirements. 

below). 

Age ▪ QDC: Under 19 or under

24 if full-time student. 

▪ Any age if permanently

and totally disabled. 

▪ QDR: No age requirement. Under 17. No exception for the 

disabled. 

No age requirement. Under 19, under 24 if full-time 

student, or any age if permanently 

and totally disabled. 

Residency ▪ QDC must reside with

taxpayer for more than half 

the year. 

▪ QDR must reside with

taxpayer for more than half 

the year. (Dependent 

parents need not live with 

the taxpayer.) 

Must reside with taxpayer for 

more than half the year. Noncitizens must reside with taxpayer 

in US. 

Must reside with taxpayer for 

more than half the year. Noncitizens must reside with taxpayer 

in US. 

Must reside with taxpayer for 

more than half the year in the US. 

Relationship ▪ QDC must be the

taxpayer’s son or daughter, 

grandchild, younger sibling, 

niece/nephew, or foster 

child. 

▪ QDR may be any relative 

or other individual living as a 

member of the household. 

Same as QDC. Same as QDC or QDR, 

depending on qualifying status of 

dependent. 

Same as QDC. 

Support ▪ QDC cannot provide over

half of own support. 

▪ No income limitation.

▪ QDR cannot provide over

half of own support. 

▪ Gross income must be 

below $4,250. 

Same as QDC. Same as QDC or QDR, 

depending on qualifying status of 

dependent.1 

No support test. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

continued on next page 

35 
 

 

 

 

 

Table A2, Continued 

Elgibility Rules for Dependent Status, Child Credit, Additional Child Tax Credit, the Other Dependent Credit 

and the Earned Income Tax Credit 

2019 Parameter Vaules 

Eligibility Criteria for Dependent Child (QDC) and 

Dependent Relative (QDR) 

(§ 151-152) 

Child Tax Credit 

Additional Child Tax Credit 

(CTC, ACTC - § 24) 

Other Dependent 

Tax Credit 

(ODTC - § 24) 

Earned Income 

Tax Credit 

(EITC - § 32) 

Child of ▪ Custodial parent can ▪ No special rule permitting Same as QDC. Same as QDC, if dependent is Only the parent residing with the 

Divorced or waive child to noncustodial waiver. QDC. No special rule for QDR. child can claim qualifying child for 

Separated parent if they provides over EITC. 

Parents half of the child's support 

and there is a written 

agreement. 

Child: 

Citizenship/ 

Identity 

Documents 

and Residency 

in US 

US citizen or resident of US, Canada, or Mexico. Must 

have taxpayer identification number (TIN) at the time the 

return is filed. 

US citizen or resident of US. 

Must have SSN valid for work in 

the US.2 

US citizen or resident of US. 

Must have taxpayer identification 

number (TIN). 

US citizen or resident of US. 

Must have SSN valid for work in 

the US.3 

Taxpayer(s): 

Citizenship/ 

Identity 

Documents 

and Residency 

in US 

No explicit restrictions. No explicit restrictions. No explicit restrictions. Must have SSN valid for work in 

the US. 

Budget 

Proposal: 

Filer(s) and 

Dependent 

must have 

SSN for any § 

24 Credit 

No explicit restrictions. Taxpayer(s) and QDC must have 

SSN valid for work to claim 

CTC/ACTC. 

Taxpayer(s) and QDR must have 

SSN valid for work to claim 

ODTC. 

Taxpayer(s) and claimed child 

must have SSN valid for work in 

the US. (Proposal contains 

technical correction.) 

continued on next page 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

36 
Table A2, Continued 

Elgibility Rules for Dependent Status, Child Credit, Additional Child Tax Credit, the Other Dependent Credit 

and the Earned Income Tax Credit 

2019 Parameter Vaules 

Notes: 

For all purposes in this table, "citizen" also includes US nationals," who are individuals born in American Samoa or the Commonwealth of the Northern Mariana Islands who have 

made the election to be treated as US nationals and not US citizens. Individuals born in Puerto Rico, Guam, and the US Virgin Islands are US Citizens. US for purposes of the 

residency test is defined as the 50 US states and the District of Columbia. 

Unmarried taxpayers who maintain a home for a dependent child or relative may be eligible to file as a head of household and benefit from a higher standard deduction and a more 

generous income tax rate schedule than available to single filers. In certain cases, a married taxpayer with children may be considered unmarried for tax purposes. The taxpayer 

must live apart from his or her spouse for the last six months of the year, maintain the household where the children reside for more than half the year and be able to claim the 

children as dependents as defined in § 151-152. 

The IRC has special rules for allocating dependent status, and thus any benefits, in cases where the individual is the QDC or QDR of more than one taxpayer and/or when the 

parent is not the person claiming the benefit for a QDC. We refer readers to IRS publications for these unusual cases. 

Footnotes: 

1

 Although the relationship requirement is stricter for QDC than for QDR, the support requirements is stricter for QDR than for QDC. It is thus possible that a person dependent 

on others for support may qualify as neither a QDC or a QDR for tax purpose. For example, a parent might be supporting her 20 year old son who earns $5,000. If the son is a fulltime student, he will qualify as the parent's QDC even though his earnings are above the eligibility threshold for QDR. If instead the son were a part-time student, he will not 

qualify as the parent's QDC because he would be older than the non-student threshold, and he would not qualify as the parent's QDR because of his earnings. Such a person is 

generally not eligible for any credits. 

2

 A QDC who has a greencard but not citizenship who resides in Canada or Mexico is not eligible for CTC/ACTC or ODTC. A QDC of any age with an ITIN is not be eligible for the 

CTC/ACTC. 

3

 The EITC SSN requirement also allows the EITC to the few individuals who received their SSN for a non-work purpose other than to receive benefits. SSNs are no longer 

available for this reason and the current budget proposal would tighten the definition to disallow this small exception. 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

37 
... 

re 

0:: 

X 

re 

I30% 

20% 

10% 

0% 

-10% 

-20% 

... 

- -- - ; 

,/ 

I 

, 

I ' 

. -

f- 

Figure 1 

Stylized Marginal and Average Tax Rates and as Family Income Increases 

Single Filer No Dependents 

Current Law - Tax Year 2019 

itemizing 

begins 

here .J., 

I 

__ .. -- -.,. ... ----- .. -- , ,.,.. _.. -- .; 

-

, ,,,,,. .-- ,,,. - ; 

24% bracket begins 

here  - f- >-

"'-income tax 

liability begins 

here. 

- -

---- 32% bracket 

begins here  

-

EITCpha -se-in f-12% bracket - stylized Marginal Tax Rate (left axis) 

begins at $21,900 

- - Average Tax Rate {left axis) 

f-10% bracket begins at 

$12,i 00 

0 20 40 60 80 100 120 140 160 180 

Adjusted Gross Income (All Income from Wages) ($000) 

--

-

200 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

38 
20% 

0% 

-20% 

(1) 

... 

ro 

0::: -40% X 

ro 

I-

-60% 

-80% 

-100% 

-120% 

0 

Figure 2 

Stylized Marginal and Average Tax Rates and Tax Support for 

Joint Filer with One Dependent Child under 17 

Current Law - 2019 

~----- EITC phases out 

~ CTC phases in 

itemizing begins -1, 

-~------- ----------------

, 

, 

, 

, 

I 

------- ,---- 1'\.income tax liability 

begins 

~ 12% bracket begins 

----------

~22% bracket begins 

~ 10% bracket begins at $24,400 buttaxpayer faces no tax due to 

phase-in of non-refundable portion of the CTC. 

EITC and ACTC phase-in 

20 40 60 80 100 120 140 160 

32% bracket begins at 

a round $360k and family 

credits begin to phase out 

at$400k  

~24% bracket begins 

- Tax Support for Child (right axis) 

- Stylized Marginal Tax Rate {left axis) 

- - - Average Tax Rate {left axis) 

180 200 220 240 260 

Adjusted Gross Income {All Income from Wages) ($000) 

280 

12,000 

10,000 

8,000 

~ 

:E! 

.c 

u 

6,000 ~ 

.E 

t:: 

0 

0.. 

0.. 

:::, 

Vl 

4,000 

2,000 

0 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

39 
20% 

0% 

-20% 

Cl) 

+-

ro 

er:: 

X 

ro 

I-

-40% 

-60% 

-80% 

-100% 

-120% 

0 

f--------  

EITC Phase-in 

Figure 2A- Moderate Income Focus 

Stylized Marginal and Average Tax Rates and Tax Support for 

Joint Filer with One Dependent Child under 17 

Current Law - 2019 

--------- ------ -- -- ----- -- .,----- EITC (right axis) 

!'\.income ------- tax 

liability begins 

here. 

' , ... ....... --- .,--

----~~ - CTC (right axis) 

- ACTC (right axis) 

f-------- 

ACTC phase-in 

10 20 

- Stylized Marginal Tax Rate (left axis) 

- - - Ave rage Tax Rate (left axis) 

f--10% bracket begins at $24,400but 

taxpayer faces no tax due to phase-in 

of non-refundable portion of the CTC. 

30 40 

~ 12% bracket begins 

so 

Adjusted Gross Income (All Income from Wages) ($000) 

12000 

10000 

8000 

0: 

:E 

..r:: 

u 

6000 ~ 

.E 

t:'. 

0 

a. 

a. 

::, 

Vl 

4000 

2000 

0 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

40 
20% 

0% 

-20% 

(1) 

... 

ro 

0::: -40% X 

ro 

I-

-60% 

-80% 

-100% 

-120% 

Figure 3 

Stylized Marginal and Average Tax Rates and Tax Support for 

Head of Household Filer with One Dependent Child under 17 

Current Law - 2019 

~----- EITC phases out 

~ CTC phases in 

~----- ---------1 

, 

, 

----- ,-----­ , r'\.income t , liability 

begins 

itemizing begins -1, child credit phases out 

-------------- ------------------------

I 

- Tax Support for Child (r ight axis) 

Filing Status Change 

I 

I 

~12% bracket ~22% bracket ~24% bracket 

begins begins 

~ 10% bracket begins at $24,400 but taxpayer faces no tax due to 

~ ase.in-of---f'lon-refundable portion of the CTC. 

~- f lTCand ACTC phase-in 

- stylized Marginal Tax Rate {left axis) 

- - - Average Tax Rate {left axis) 

~32% bracket 

begins 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

--~-----------------------------------------------~ o 

0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 

Adjusted Gross Income {All Income from Wages) ($000) 

~ 

:E! 

.c 

u 

~ 

.E 

t:: 

0 

0.. 

0.. 

:::, 

Vl 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

41 
20% 

0% 

-20% 

(1l 

.., 

ro 

0::: -40% X 

ro 

I-

-60% 

-80% 

-100% 

-120% 

, 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

Figure 4 

Stylized Marginal and Average Tax Rates and Tax Support for 

Joint Filer with One Dependent College Student 

Current Law - 2019 

f------- EITC phases out 

f-- CTC phases in 

.,.-----­ ~ ----- income tax liability 

begins 

f--12% bracket begins 

itemizing begins .J,, 

------------

f--22% bracket begins 

~ 10% bracket begins at $24,400 but taxpayer faces no tax due to 

phase-in of non-refundable portion of the ere. 

-----------------------

32% bracket begins at 

a round $360k and family 

credits begin to phase out 

at$400k  

f--24% bracket begins 

- Tax Support for Child {right axis) 

- Stylized Marginal Tax Rate {left axis) 

---Average Tax Rate {left axis) 

AOTC phase-out 

~ 40% of AOTC ($1,000) is fully refundable 

~- EITCand ACTC phase-in 

0 20 40 60 80 100 120 140 160 180 200 220 240 260 

Adjusted Gross Income {All Income from Wages) ($000) 

12,000 

10,000 

8,000 

~ 

:!:! 

.s:: 

u 

6,000 ~ 

.E 

t:: 

0 

c.. 

c.. 

:::, 

V, 

4,000 

2,000 

0 

280 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

42 
20% 

0% 

-20% 

(1) 

... 

ro 

0::: -40% X 

ro 

I-

-60% 

-80% 

-100% 

-120% 

/ 

I 

I 

Figure 5 

Stylized Marginal and Average Tax Rates and Tax Support for 

Joint Filer with One Dependent Child under 17 and Child Care Expenses 

Current Law - 2019 

~----- EITC phases out 

~ CTC phases in 

' 

------ r'\.income tax liability 

begins 

~ 12% bracket begins 

itemizing begins -1, 

---... -... -

~22% bracket begins 

~ 10% bracket begins at $24,400 buttaxpayer faces no tax due to 

phase-in of non-refundable portion of the CTC. 

-------------

32% bracket begins at 

a round $360k and family 

credits begin to phase out 

at$400k  

~24% bracket begins 

- Tax Support for Child (right axis) 

- Stylized Marginal Tax Rate {left axis) 

- - Average Tax Rate {left axis) 

At higher incomes, taxpayers claim the 

full child credit and $600 of CDCTC. 

~- EITC and ACTC phase-in 

0 20 40 60 80 100 120 140 160 180 200 220 240 260 

Adjusted Gross Income {All Income from Wages) ($000) 

12,000 

10,000 

8,000 

~ 

:E! 

.c 

u 

6,000 ~ 

.E 

t:: 

0 

0.. 

0.. 

:::, 

Vl 

4,000 

2,000 

0 

280 

U.S. Department of the Treasury 

Office of Tax Analysis 

May 2019

43