Tax

Key Findings The Child Tax Credit (CTC) is a partially-refundable tax credit available to parents with qualifying dependents under the age of 17. Like other tax credits, the CTC reduces tax liability dollar-for-dollar of the value of the credit. Taxpayers may claim a maximum credit of $2,000 for each child, with a portion of the…

The federal government is offering small businesses a lifeline in the form of loans that can be forgiven if they use the money for specified purposes (like payroll, rent and mortgage payments, group health benefits, and utilities) and retain their employees. The federal government will not count a fully or partially forgiven loan as taxable…

As Republicans and Democrats joined hands to provide the most recent of what might be several stages of relief from our national pandemic crisis, almost…

The massive debts governments across the globe are incurring to give life-support to their economies are going to leave policymakers with a tough choice: Raise taxes indiscriminately to pay off these debts and risk further economic depression, or focus on tax policies that help rebuild global economy. Unquestionably, growth should be the top priority, but…

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This blog post is part of that series. Past Updates: March 24, March 25, March 26,…

One big unanswered question about the COVID-19 recovery rebates included in the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act: What year’s income will the…

In the midst of coronavirus responses and accompanying hits to state revenue, some states that had previously held out are looking to expanded online sales tax authority as an additional revenue source. Tennessee Gov. Bill Lee (R) signed SB 2182 on April 1, making the Volunteer State the latest—and one of the last—states to impose…

Early this month, state legislators in Kentucky passed a revenue package (HB351) which includes an excise tax increase on vapor products. The bill divides vapor products into two categories, open tank systems and cartridge-based systems, with two tax rates. Governor Andy Beshear (D) is expected to sign the bill. Cartridges will be taxed at $1.50…

Some policymakers are proposing a payroll tax holiday for businesses and individuals for 2020 and a complete delay in filing deadlines for tax year 2019 and 2020 to April 2021. Businesses could also delay their quarterly estimated payments in 2020 to April 2021. Suspending the payroll tax on both employers and employees would reduce the…