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NE joint 2depx 17Kpwages 4,10age1,2 #767

@feenberg

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@feenberg

See http://taxsim.nber.org/out2psl/767

This taxpayer has income less than the poverty level and a 4 year old child so should be eligible for the 2000 CTC. PE doesn't allow it. Maybe because childcare is zero? The requirement for licensed child care is waived for poverty level households:

https://revenue.nebraska.gov/tax-credits/child-care-tax-credit-act

I do think we should use childcare expense as a proxy for licensed daycare. There is also the issue that a finite amount of money was appropriated for this, so it is really an expenditure and not a credit. Oddly, there is no application form, only an online portal. So TA doesn't handle it.

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