Bill Overview
Title: Tax Credit for Student Parents Act
Description: This bill expands the tax credit for expenses for household and dependent care services necessary for gainful employment to include education-related expenses for certain full-time students.
Sponsors: Rep. Schrier, Kim [D-WA-8]
Target Audience
Population: Student parents globally
Estimated Size: 5000000
- The bill affects student parents, particularly those who are full-time students.
- It applies specifically to those incurring household and dependent care expenses related to their education.
- The benefits extend to students aiming to balance education with childcare responsibilities, potentially improving their financial situation and educational opportunities.
Reasoning
- Approximately 5 million student parents are the target for this policy in the US, which covers a significant fraction of the 20 million college students.
- Given the US population distribution, a small sample might capture a diversity of economic situations, which impacts how the tax credit benefits the individual.
- Cost budget constraints suggest that while impactful, the policy might not cover all expenses fully for each individual, especially over multiple years.
- Not all student parents have identical expenditures, meaning the benefit level can significantly vary across individuals, leading to different levels of wellbeing change.
- The policy can have a low to high impact depending on the person's current financial reliance on educational expenses combined with child-rearing costs.
- The policy is mainly directed at student parents in various stages of education, from initial degrees to advanced degrees for those seeking career advancements.
Simulated Interviews
Full-time student (Phoenix, AZ)
Age: 23 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 12/20
Statement of Opinion:
- I struggle to balance classes and work while ensuring my child is taken care of when I'm busy.
- Any financial help would reduce stress and allow me to focus more on my coursework.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Part-time student (Nashville, TN)
Age: 33 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I appreciate any support to offset costs associated with studying and childcare.
- More financial leeway means I could take more classes and finish my degree faster.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Graduate student (Boston, MA)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Our family budget is tight due to daycare costs and my part-time studies.
- The tax credit would ease these burdens and encourage me to continue my graduate studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Undergraduate student (Seattle, WA)
Age: 28 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 3/20
Statement of Opinion:
- Managing studies, work, and caring for my child requires financial support.
- The credit would reduce financial strain and allow more focus on my child's needs and my studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Full-time student (Chicago, IL)
Age: 26 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- Living with my parents helps, but I cannot manage education costs alone.
- The tax credit would make a big difference in my ability to continue studying without more debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Part-time student (Dallas, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Balancing work, studies, and caring for my kids is tough.
- The extra financial support would be a relief, allowing me more time to focus on school and family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Full-time student (Miami, FL)
Age: 22 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- I am constantly juggling work and studies while caring for my child.
- The relief from the tax credit would help me focus more on my education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Graduate student (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Juggling studies and single parenting until my husband returns.
- The tax credit would support childcare costs, aiding my focus on my degree.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Part-time student (New York City, NY)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 6/20
Statement of Opinion:
- Balancing work, studies, and parenting alone is financially straining.
- Assistance from the tax credit would allow me to afford better childcare solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Part-time student (Denver, CO)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 3/20
Statement of Opinion:
- The combination of school costs and childcare to support my kids' schooling is stressful.
- The tax credit would ease my budget and allow more focus on upskilling and career transition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $7500000000 (Low: $7000000000, High: $8000000000)
Year 2: $7605000000 (Low: $7100000000, High: $8105000000)
Year 3: $7710000000 (Low: $7205000000, High: $8210000000)
Year 5: $7920000000 (Low: $7405000000, High: $8420000000)
Year 10: $8370000000 (Low: $7825000000, High: $8870000000)
Year 100: $11550000000 (Low: $10500000000, High: $12600000000)
Key Considerations
- The scale of the tax credit assumes average education-related expenses per student parent.
- Administrative and compliance costs need to be factored in to ensure proper implementation and monitoring.
- Potential offsetting factors such as increased workforce participation and economic activity among recipients are not directly quantifiable.