Summary: H.R.4434 — 100th Congress (1987-1988)All Information (Except Text)

There is one summary for H.R.4434. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (04/20/1988)

Toddler Tax Credit Act of 1988 - Amends the Internal Revenue Code to allow an individual a refundable income tax credit for each dependent child under the age of six. Establishes the credit percentage at: (1) 15 percent for a single qualified dependent; and (2) ten percent for each of three additional qualified dependents. Reduces the credit percentage for taxpayers whose earned income exceeds $8,000 (credit minimum is $750 per qualified dependent) and for taxpayers subject to alternative minimum tax. Directs the Secretary of the Treasury to prescribe tables for determining the credit amount. Applies phase-in amounts for tax years 1989 through 1991. Indexes post-1993 credit amounts.

Provides for advance toddler tax credit payments by employers to employees who provide certification of eligibility. Requires taxpayers to file information returns to reflect such payments.

Disallows: (1) the earned income tax credit to taxpayers eligible for the toddler tax credit; and (2) application of the dependent care credit in connection with a dependent child under the age of six.