Is There an Alternative to Children's Federal Tax Credits?

The federal tax credit for each child is provided to assist families in deferring the costs of raising their children. There are no alternatives to the child tax credit. The only way to obtain the credit is to have a social security number for each dependent child in the household. There may also be income limits in order to claim the tax credit.

Many critics of the child tax credit claim that it encourages families to have additional children and places an unfair tax burden on childless working adults. However, the cost of raising a child has been estimated at being more than $200,000, so the idea that a tax credit would offset enough of the cost to encourage a higher birth rate is questionable. 

Single adults without children who earn less than a specified amount each year can also qualify for the earned income credit, which is typically associated with families with children, so low income adults without children are protected from the burden of supporting families with children. Adults who provide care for disabled or elderly family members may also be eligible for certain tax credits, so be sure to speak with a tax advisor to determine your eligibility.