Several provisions of the federal individual income tax code reduce the tax liability of people who have dependents. In this report, CBO examines the tax benefit of having dependents and the distribution of that benefit under current law in 2019 and in 2026. The average tax benefit of having dependents in 2019 is estimated to be $2,300 per dependent ($3,800 per family). Under the 2026 tax rules, that benefit would be $1,700 per dependent ($2,800 per family). In addition, the agency analyzes how three policy options that would simplify dependent-related tax provisions would affect the tax benefit of having dependents.

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