CBO Report: Tax Benefits of Dependents on Federal Income Taxes (IRC §24)

Report examining the tax benefit, the reduction in tax liability after refunds from credits are accounted for, of having dependents and the distribution of that benefit under current law in 2019 and in 2026, after certain provisions of the 2017 TCJA expire, the Congressional Budget Office issued January 23. The CBO stated that for both 2019 and 2026, single taxpayers with dependents will typically be able to file as a head of household, which provides a larger standard deduction than the single filing status and although exemptions for dependents are not allowed for 2019, taxpayers with dependents may be eligible ...