Who claims the federal adoption tax credit? Those who know about it

Document Type

Article

Publication Date

2024

Publication Title

The American Journal of Economics and Sociology

Abstract

This research investigates which individuals are aware of and claim the federal adoption tax credit. Using a probit model, I find that the probability that one claims the credit increases with one's income and is lower for Black adoptive parents compared to White ones. These discrepancies in usage stem from different probabilities of knowing about the credit. However, conditional on awareness, I find that the probability of claiming the credit is no different among members of differing income or racial groups, implying that a direct way to increase take-up of the tax credit could simply be increasing awareness of it.

Department

Economics and Finance

Volume Number

83

Issue Number

3

DOI

https://doi.org/10.1111/ajes.12564

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