we\'re reviewing some of the most common federal income tax deductions for indiv

Question

we're reviewing some of the most common federal income tax deductions for individuals. Many of them could perhaps be classified as family-based deductions, or enacted deductions that target those who might have children or other types of family obligations to fulfill. Is there an underlying theme or purpose to most of these deductions? If so, what is it? Do the deductions that Congress has enacted advance this purpose? Is this something that Congress should be doing at all? Provide an example of two such deductions, and supplement your argument with outside resources discussing the pros, cons, and impacts of these deductions. There are a lot of available choices! Please cite sources!!!

Explanation / Answer

Federal income tax deductions

Child and Dependent Care Credit:

This deduction is useful for tax payers to deduct the amount used for qualified child

Earned Income Tax Credit:

It reduces the tax amount of tax payer.

Pros and cons Child and Dependent Care Credit:

Dependant yonger age less than 13

Can claim a Child and Dependent Care Credit for one or more child this is useful for th tax payers to support for cost of child expenses.

This credit is more useful for low income familes upto $15,000 can claim they can claim a credit for 35% of qualifying expenses.

Earned Income Tax Credit:

This credit is working as subsidiaries for low earnings tax payers.

It increases hiddent marginal tax.

Congress have started to analysis about tax pattern and programs, they never forget to speak about non matching tax code. Congress main concept is   to maintain steady gradual the economic growth.

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