The Child Tax Credit: Problems with the Refundable Portion

Abstract

This article discusses the current tax code with respect to the child tax credit (CTC), including
some of the history of its evolution. Three specific problems with the refundable portion of the
credit are described. These problems arise because of the poor wording and logical inconsistency
in the current tax code, at least partly due to the evolution of this particular credit over time and
partly due to technical tax corrections which are not consistent with Congressional intent.
Suggestions for improving the tax code are given.