NRCDV Logo
  • Adult Children Exposed to Domestic Violence
  • Runaway & Homeless Youth Toolkit
  • Prevent Intimate Partner Violence
  • Violence Against Women Resource Library
  • Domestic Violence and Housing Technical Assistance Consortium
  • Domestic Violence Awareness Project
  • National Resource Center on Domestic Violence
Leave This Site
Leave

img-user-picture.png

 Create an account to save and access your bookmarked materials anytime, anywhere.

  create account  |   login

An Online Resource Library on Gender-Based Violence.

Other Tax Credits for Individuals and Families

A number of federal tax credit programs are designed specifically for workers with children and dependents. The goal of these programs is to help workers maintain employment by offsetting the costs related to caring for children and dependents. This section includes general information about tax credits for families, as well as specific information about the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Adoption Tax Credit. In addition, this section explores credits available for those investing in their education and health.

General Information on Tax Credits for Families
Child Tax Credit
The Child Tax Credit (CTC) is a federal tax credit designed to help working families offset the cost of raising children. First created in 1997, the CTC was expanded through the Economic Growth and Tax Relief Reconciliation Act of 2001, and then again through ARRA in 2009, to provide greater tax relief and make a portion of the credit refundable. Those improvements were then extended through December 31, 2012 in The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This section provides information about the CTC including relevant legislative activity, eligibility, and how to access the appropriate application forms.

It’s not too late to claim your 2021 Expanded Child Tax Credit if you haven’t already. To claim your 2021 Child Tax Credit, you must file a 2021 tax return by April 18, 2025.  If you filed a 2021 tax return but didn’t get the Child Tax Credit and were eligible for it, you can amend your tax return.

Learn more from the Center on Budget and Policy Priorities.

Policy Basics: The Child Tax Credit

This page for the Center on Budget and Policy Priorities provides basic details about the CTC, including refundability and the value of the credit.

What is the Child Tax Credit (CTC)?

Raising children is expensive—recent reports show that the cost of raising a child is over $200,000 throughout the child’s lifetime. The Child Tax Credit (CTC) can give taxpayers back money at tax time to help with those costs. This page outlines key provisions of the CTC.

Advance Child Tax Credit Payments in 2021

The IRS has created a special Advance Child Tax Credit 2021 page designed to provide the most up-to-date information about the credit and the advance payments. You can find information about tools related to the Child Tax Credit on this webpage.

About 16 Million Children in Low-Income Families Would Gain in First Year of Bipartisan Child Tax Credit Expansion

The bipartisan Child Tax Credit expansion in the tax bill negotiated by Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Jason Smith takes an important step toward making the credit work for children in families with low incomes. This report from the Center on Budget and Policy Priorities outlines the short- and long-term impact that the proposed CTC expansion could have in lifting children out of poverty. 
Child and Dependent Care Tax Credit
The Child and Dependent Care Tax Credit (CDCTC) is a federal tax credit designed to help working families pay for the care of qualified individuals including children, adult dependents, or an incapacitated spouse. The goal is to offset care-related expenses in order for the taxpayer to maintain employment. The CDCTC is a percentage of the care-related expenses and varies based on the taxpayer's adjusted gross income. Currently, taxpayers can claim up to $3,000 in dependent care expenses for one child/dependent and $6,000 for two children/dependents. The credit is up to 35% of these expenses, depending on income; the lower the income the higher the percentage of care-related expenses that can be claimed. The current CDCTC benefits are a result of an expansion in the 2001 tax cuts that were extended through December 31, 2012 as part of H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This section provides resources with general information about the CDCTC, including eligibility and how to access the appropriate forms.

Making Care Less Taxing: Improving State Child and Dependent Care Tax Provisions

The tax codes of the federal government and over half the states have some type of child and dependent care (CADC) tax provision that reduces the amount of tax owed by families and, in some instances, increases their tax refunds. This suite of Making Care Less Taxing materials from the National Women's Law Center provides a comprehensive overview of CADC tax provisions.

Adoption Tax Credit
The Adoption Tax Credit (ATC) is a program for low-income people who have expended qualified out-of-pocket expenses related to the adoption of a child. The credit amount depends on the expenses incurred. Families who have adopted children with special needs can claim the full credit, even if the expenses are less than the credit amount. Adoptions of children with special needs from the foster care system are also fully eligible, even if no adoption expenses were incurred. The ATC was made permanent in the American Taxpayer Relief Act of 2012. This section provides basic information about the ATC and explanations of eligibility and how to apply.
Higher Education Tax Credits
The American Opportunity Tax Credit (AOTC), which expanded and renamed the already-existing Hope and Lifetime Learning credit, can be claimed for tuition and certain fees for higher education. The AOTC, which was to expire at the end of 2012, was extended through December 2017 by the American Taxpayer Relief Act of 2012. This section provides general information about the AOTC and allowable expenses.

American Opportunity Tax Credit

This page provides basic information about the AOTC, including how to qualify, which expenses are allowable, and where to access application forms.

Health Coverage Tax Credits
Under the Affordable Care Act (ACA, also sometimes known as Obamacare), millions of Americans qualify for financial assistance to help cover the cost of health insurance. There are also special rules that pertain to victims of domestic violence. Note that the resources and information provided here pertain only to people enrolling in coverage through the federal marketplace. Different rules may apply to those receiving coverage through a state marketplace plan; through Medicaid, Medicare, or CHIP; or through an employer-sponsored plan.

The Premium Tax Credit - The Basics

This IRS website provides basic information on eligibility for the premium tax credit, reporting changes in circumstance to the marketplace, and claiming the credit on federal tax returns. The website also links to IRS publications, regulations, and notices related to the premium tax credit.

Key Facts You Need to Know About: Premium Tax Credits

This collection of key facts explains who is eligible for the tax credit, how the size of an individual or family’s credit is calculated, how mid-year changes in income and household size affect tax credit eligibility, and how the reconciliation between the tax credit amount a person receives and the amount for which he or she is eligible will be handled.