Poll Finds Lower Awareness of Caregiving Tax Credits Among Middle-Income Families

A Bipartisan Policy Center poll released this month found that middle-income caregivers reported lower awareness and use of federal tax benefits than higher-income caregivers. The survey focused on households earning between $50,000 and $100,000 annually. These families often exceed income limits for means-tested programs yet still face high costs for child care, housing, and health care.

Seventy percent of caregivers with children under 18 said they were aware of the Child Tax Credit, and 58 percent said they received it. In a 2023 Bipartisan Policy Center survey, 92 percent of parents reported familiarity with the credit and 78 percent said they claimed it.

The poll also examined the Child and Dependent Care Tax Credit and the Dependent Care Assistance Program. Middle-income respondents showed lower awareness and claiming rates for each compared with higher-income respondents.

Twenty-seven percent of middle-income caregivers said understanding or claiming tax benefits had been a challenge in the past year, compared with 20 percent of higher-income caregivers. Among middle-income caregivers who did not use a benefit, 39 percent said they believed they did not qualify, 23 percent said they did not know about the benefit, 17 percent cited lack of qualifying expenses or income, and 13 percent found the process too complicated.

Sixty-seven percent of middle-income caregivers expressed confidence that they understood the benefits for which they qualified, compared with 75 percent of higher-income households. The Bipartisan Policy Center noted that benefits delivered through tax returns may reduce visibility of the support families receive.