The Claiming of Children on U.S. Tax Returns
39 Pages Posted: 7 Jan 2025 Last revised: 15 Jan 2025
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The Claiming of Children on U.S. Tax Returns
The Claiming of Children on U.S. Tax Returns
Date Written: January 06, 2025
Abstract
Tax benefits tied to children form a central component of the social safety net in the United States. To participate in these programs, taxpayers must claim a child on their tax return. We study the claiming of children on tax returns by drawing on health insurance information returns to establish the presence of children in the United States. We estimate that the vast majority of insured children (approximately 95 percent) and a significant majority (between 88 and 97 percent) of all U.S. children are claimed on tax returns. Unclaimed children are disproportionately concentrated in lower income households and are more likely to live in Black and Hispanic neighborhoods.
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