Credits and Exemptions for Children

The Tax Policy Center, which is a joint venture of the Urban Institute and the Brookings Institution, authored this fact sheet on tax policies designed to support working families with children. Specifically, the Earned Income Tax Credit, Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the dependent exemption support families with children. In 2009, a single mom (or dad) with two children can receive benefits up to about $7,500 — depending on income, age of the children, and where the children live. Due to the benefits of such policies, supporting low-income families in understanding and applying for these tax supports is important.