| |||||
Family Tax Credits |
Couples with adjusted gross incomes below $110,000 and single filers below $75,000 could claim a $500 tax credit for each child under 17. In 2003, the age limit would become 18. In 1997, the credit would be $250 for children under 13. For children 13-16 (13-17 in 2003), the credit would have to be deposited in an education savings account or a prepaid tuition program. Unlike the House, eligibility for the full $500 credit would not be linked to claim of the dependent care credit. Those eligible for the earned-income credit would be allowed to take half after they take the per-child credit. |
Families that pay taxes could claim a credit for each child as old as 17 of $400 in 1998 and $500 in 1999 and beyond. The full credit would be available for single taxpayers with adjusted gross incomes up to $75,000; it would phase out for couples with incomes above $110,000. Taxpayers eligible for the Earned Income Tax Credit (EITC) would be required to apply that credit to their tax liability before they could take the child credit. In 2002, the per-child credit would be reduced by half for those who also claim the child care and dependent tax credit. Estimated cost: $71.2 billion in the first five years, $148.3 billion over 10 years.
|
The credit would be $500 if invested in an IRA for the child and $350 otherwise. The credit will be phased in from 1997 to 1999. The credit would be available for children under 13 until 2002 and for children under 18 thereafter; it would phase out between incomes of $70,000 and $85,000. The credit would be available in full to the extent of the family's income taxes before considering eligibility for the Earned Income Tax Credits; child credit and (EITC) refunds could not exceed the family's total payroll and income tax liability. Estimated cost: $70 billion. |
The credit is $300 per child in 1998 increasing to $500 per child in 2001 and thereafter; it will be available for all families earning less than $75,000. The credit is counted before the Earned Income Tax Credit and is refundable up to the FICA payroll tax paid by parents. |
A per-child credit, starting at $400 in 1998 and rising to $500 the next year. It would cover children under age 17 through 2002 and children under 19 after 2002. It would be phased out for families making $60,000 to $75,000 a year until 2000, when the income limit would rise to $80,000 to $100,000 a year. The credit would offset the family's federal income tax liability plus the employee's portion of Social Security and other payroll taxes. Eligible taxpayers would be able to contribute the credit plus up to an additional $500 a year to a new educational savings account. The money would accumulate interest tax free and could be withdrawn tax free if used for the child's education, a first time home purchase or retirement. Estimated cost: $70.2 billion over 5 years, $176.1 billion over 10 years. |