Earned Income Tax Credit Expansions and Filing Behavior Among Eligible Individuals
This paper examines the relationship between expansions of Earned Income Tax Credit (EITC) benefits and federal tax return filing behavior among EITC eligible individuals. An estimated 13 to 18 percent of individuals who are eligible for EITC do not file tax returns, and therefore do not receive the credit. One understudied approach to reducing the EITC eligible nonfiler rate is increasing EITC benefits, which effectively increases filing incentives. This study uses panel data from the 2008 Survey on Income and Program Participation that track EITC eligible individuals before and after the EITC expansion in the American Recovery and Reinvestment Act of 2009 (n = 111,057). A cross-sectional Heckit model and fixed effects linear probability model estimate that a $100 increase in EITC is associated with a 5.1 to 5.9 percent increase in the 2009 filing propensity of 2007 EITC eligible nonfilers (p
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Building Assets, Building Futures: Does receiving the Earned Income Tax Credit (EITC) help poor single mothers build assets for the future? Wagner, Stephanie; Wagner, Stephanie (2007-04-17)The Earned Income Tax Credit (ETIC) is a refundable tax credit given to low-income workers in amounts that vary by marital status, number of children, and income level. It is considered one of the most successful anti-poverty ...