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If you began receiving a retirement annuity between July 1, 1986, and January 1, 1987, and elected to use the three-year rule for California purposes and the annuity rules for federal purposes, enter in column C the amount of the annuity payments you excluded for federal purposes.
Table 1 reports the total child care credit and total credits claimed during the 1979-1988 period on all returns filed as reported by Publication 1304, Individual Income Tax Returns. The child care credit represents a large portion of the total credits claimed, increasing substantially over the sample period. (\"Total credits\" as reported in Publication 1304 do not include the earned income credit that was refunded or offset against taxes other than income taxes. For example, in 1988, individual taxpayers paid approximately $413 billion in income tax after credits and received $12 billion in credits (including $5 billion of earned income credit), of which $4 billion was child care credit.) This research extends Dunbar and Nordhauser's (1991) progressivity research on the child care credit by (1) using the Kakwani index in addition to the Suits index, (2) considering the impact of the income distribution on these indices, and (3) adding two years, 1987 and 1988, to the sample period. A comparison of the Suits and Kakwani tax indices is provided in Formby et al. (1984) (see also Progressivity, measures of). This research extends the Suits and Kakwani tax indices for credit purposes.
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