Child support payments help ensure that single-parent families have adequate economic resources and are less likely to depend on government benefits. They may encourage involvement of noncustodial parents in their children’s lives, improve child outcomes, connect noncustodial parents to work, and discourage single parenthood. However, many noncustodial parents have low earnings and may find it difficult to make child support payments. The effective tax on their earnings may lead them to work less or not at all. That means custodial parents receive less child support.

Increase earned income tax credit (EITC) amounts for noncustodial parents who work and pay child support. Currently, noncustodial parents are eligible for only a small EITC. Proposals for a general increase in their EITC amounts are not well targeted. Increasing the amounts for parents paying child support will make it easier for them to afford their obligations and encourage work.